HCI Group (NYSE:HCI) and United Fire Group (NASDAQ:UFCS) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.
HCI Group pays an annual dividend of $1.60 per share and has a dividend yield of 3.7%. United Fire Group pays an annual dividend of $1.24 per share and has a dividend yield of 2.7%. HCI Group pays out 49.5% of its earnings in the form of a dividend. HCI Group has raised its dividend for 5 consecutive years and United Fire Group has raised its dividend for 5 consecutive years.
This table compares HCI Group and United Fire Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|HCI Group||$231.29 million||1.59||$17.73 million||$3.23||13.24|
|United Fire Group||$1.07 billion||1.06||$27.65 million||N/A||N/A|
United Fire Group has higher revenue and earnings than HCI Group.
This is a breakdown of recent ratings and target prices for HCI Group and United Fire Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United Fire Group||0||1||0||0||2.00|
HCI Group presently has a consensus target price of $46.00, indicating a potential upside of 7.60%. United Fire Group has a consensus target price of $53.00, indicating a potential upside of 16.79%. Given United Fire Group’s higher probable upside, analysts plainly believe United Fire Group is more favorable than HCI Group.
This table compares HCI Group and United Fire Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|United Fire Group||2.58%||1.85%||0.60%|
Insider and Institutional Ownership
60.2% of HCI Group shares are held by institutional investors. Comparatively, 63.0% of United Fire Group shares are held by institutional investors. 22.3% of HCI Group shares are held by insiders. Comparatively, 6.2% of United Fire Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
HCI Group beats United Fire Group on 8 of the 14 factors compared between the two stocks.
HCI Group Company Profile
HCI Group, Inc. primarily engages in the property and casualty insurance business in Florida. It provides property and casualty insurance to homeowners, condominium owners, and tenants; and reinsurance. The company also owns and operates one full-service restaurant, two marinas, two retail shopping centers, and one office building. In addition, it offers designs and develops Web-based applications and products for mobile devices. The company was formerly known as Homeowners Choice, Inc. and changed its name to HCI Group, Inc. in May 2013. HCI Group, Inc. was incorporated in 2006 and is headquartered in Tampa, Florida.
United Fire Group Company Profile
United Fire Group, Inc., together with its subsidiaries, provides insurance protection for individuals and businesses in the United States. The company operates through two segments, Property and Casualty Insurance, and Life Insurance. The Property and Casualty Insurance segment offers commercial and personal lines of property and casualty insurance, as well as assumed reinsurance products. Its commercial policies include fire and allied lines, other liability, automobile, workers' compensation, and surety coverage; and personal lines consists of automobile, and fire and allied lines coverage, including homeowners. The Life Insurance segment underwrites deferred and immediate fixed annuities; universal life insurance products; and traditional life insurance products, such as term life insurance and whole life insurance products. The company sells its products through a network of independent agencies. United Fire Group, Inc. was founded in 1946 and is headquartered in Cedar Rapids, Iowa.
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