Contrasting UMC (OTCMKTS:UMCN) & Crawford & Company (NYSE:CRD.B)

Crawford & Company (NYSE:CRD.B) and UMC (OTCMKTS:UMCN) are both small-cap business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Volatility and Risk

Crawford & Company has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, UMC has a beta of 30.07, suggesting that its share price is 2,907% more volatile than the S&P 500.

Institutional and Insider Ownership

11.0% of Crawford & Company shares are owned by institutional investors. 51.0% of Crawford & Company shares are owned by insiders. Comparatively, 16.8% of UMC shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Crawford & Company and UMC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crawford & Company	1	0	0	0	1.00
UMC	0	0	0	0	0.00

Profitability

This table compares Crawford & Company and UMC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crawford & Company	1.37%	24.21%	5.46%
UMC	-12.39%	N/A	N/A

Valuation and Earnings

This table compares Crawford & Company and UMC”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crawford & Company	$1.31 billion	0.39	$19.63 million	$0.36	29.14
UMC	$28.55 million	1.38	-$340,000.00	N/A	N/A

Crawford & Company has higher revenue and earnings than UMC.

Summary

Crawford & Company beats UMC on 8 of the 10 factors compared between the two stocks.

About Crawford & Company

Crawford & Co. engages in the provision of claims management and outsourcing solutions to carriers, brokers, and corporates. It operates through the following segments: Crawford Loss Adjusting, Crawford TPA Solutions, and Crawford Platform Solutions. The Crawford Loss Adjusting segment consists of adjusting services provided to insurance companies and self-insured entities related to property and casualty losses caused by physical damage to commercial and residential real property and certain types of personal property. The Crawford TPA Solutions segment provides third party administration for workers’ compensation, auto and liability, disability absence management, medical management, and accident and health to corporations, brokers, and insurers worldwide. The Crawford Platform Solutions segment is involved in the management of contractor networks and the provision of claims management services to insurance companies and self-insured entities related to property, casualty, and catastrophic losses. The company was founded by Jim Crawford in 1941 and is headquartered in Peachtree Corners, GA.

About UMC

UMC, Inc. provides medical insurance claims coding and processing, electronic medical records storage, chargemaster review, pricing comparison, and accounts receivable management services to healthcare providers. Its customers primarily include hospitals, medical clinics, and physician practitioners in the United States. The company was formerly known as United Medicorp, Inc. and changed its name to UMC, Inc. in May 2007. UMC, Inc. was incorporated in 1989 and is based in Pampa, Texas.