Universal Insurance (NYSE: UVE) and Horace Mann Educators (NYSE:HMN) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
This is a summary of current ratings and recommmendations for Universal Insurance and Horace Mann Educators, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Horace Mann Educators||0||1||0||0||2.00|
Universal Insurance pays an annual dividend of $0.56 per share and has a dividend yield of 1.7%. Horace Mann Educators pays an annual dividend of $1.10 per share and has a dividend yield of 2.5%. Universal Insurance pays out 18.7% of its earnings in the form of a dividend. Horace Mann Educators pays out 27.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Universal Insurance has raised its dividend for 9 consecutive years.
Valuation & Earnings
This table compares Universal Insurance and Horace Mann Educators’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Universal Insurance||$751.92 million||1.52||$106.93 million||$2.99||10.94|
|Horace Mann Educators||$1.17 billion||1.53||$169.45 million||$4.06||10.85|
Horace Mann Educators has higher revenue and earnings than Universal Insurance. Horace Mann Educators is trading at a lower price-to-earnings ratio than Universal Insurance, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Universal Insurance has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500. Comparatively, Horace Mann Educators has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.
This table compares Universal Insurance and Horace Mann Educators’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Horace Mann Educators||14.46%||5.17%||0.66%|
Insider and Institutional Ownership
74.3% of Universal Insurance shares are owned by institutional investors. Comparatively, 99.5% of Horace Mann Educators shares are owned by institutional investors. 10.5% of Universal Insurance shares are owned by insiders. Comparatively, 2.1% of Horace Mann Educators shares are owned 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.
Universal Insurance beats Horace Mann Educators on 9 of the 17 factors compared between the two stocks.
Universal Insurance Company Profile
Universal Insurance Holdings, Inc. (UVE) is a private personal residential homeowners insurance company in Florida. The Company performs substantially all aspects of insurance underwriting, policy issuance, general administration, and claims processing and settlement internally. The Company’s subsidiaries include Universal Property & Casualty Insurance Company (UPCIC) and American Platinum Property and Casualty Insurance Company (APPCIC). UPCIC writes homeowners insurance policies in states, including Alabama, Delaware, Florida, Georgia, Hawaii, Indiana, Maryland, Massachusetts, Michigan, Minnesota, North Carolina, Pennsylvania, South Carolina and Virginia. APPCIC writes homeowners and commercial residential insurance policies in Florida. The Company has developed a suite of applications that provide underwriting, policy and claim administration services, including billing, policy maintenance, inspections, refunds, commissions and data analysis.
Horace Mann Educators Company Profile
Horace Mann Educators Corporation (HMEC) is an insurance holding company. Through its subsidiaries, HMEC markets and underwrites personal lines of property and casualty (primarily personal lines automobile and homeowners) insurance, retirement annuities (primarily tax-qualified products) and life insurance in the United States. The Company’s operating segments include Property and Casualty segment, comprising primarily personal lines automobile and homeowners products; Retirement segment, comprising primarily tax-qualified fixed and variable annuities; Life segment life insurance, and Corporate and Other. It markets and services its products through a sales force of full-time agents supported by its Customer Contact Center. These agents sell HMEC’s products and limited additional third-party vendor products. As of December 31, 2016, its property and casualty subsidiaries and its life insurance subsidiary were licensed to write business in over 48 states and the District of Columbia.
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