Analyzing Hamilton Insurance Group (NYSE:HG) & Universal Insurance (NYSE:UVE)

Hamilton Insurance Group (NYSE:HG) and Universal Insurance (NYSE:UVE) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Earnings and Valuation

This table compares Hamilton Insurance Group and Universal Insurance’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hamilton Insurance Group	$2.18 billion	1.00	$258.73 million	$3.29	5.98
Universal Insurance	$1.39 billion	0.43	$66.82 million	$2.55	8.26

Hamilton Insurance Group has higher revenue and earnings than Universal Insurance. Hamilton Insurance Group is trading at a lower price-to-earnings ratio than Universal Insurance, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hamilton Insurance Group and Universal Insurance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hamilton Insurance Group	19.11%	18.53%	5.44%
Universal Insurance	5.60%	21.14%	3.06%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Hamilton Insurance Group and Universal Insurance, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hamilton Insurance Group	0	1	5	0	2.83
Universal Insurance	0	0	1	0	3.00

Hamilton Insurance Group presently has a consensus target price of $20.50, indicating a potential upside of 4.17%. Universal Insurance has a consensus target price of $25.00, indicating a potential upside of 18.71%. Given Universal Insurance’s stronger consensus rating and higher possible upside, analysts clearly believe Universal Insurance is more favorable than Hamilton Insurance Group.

Institutional & Insider Ownership

29.2% of Hamilton Insurance Group shares are held by institutional investors. Comparatively, 66.6% of Universal Insurance shares are held by institutional investors. 2.7% of Hamilton Insurance Group shares are held by company insiders. Comparatively, 17.5% of Universal Insurance shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Hamilton Insurance Group beats Universal Insurance on 7 of the 13 factors compared between the two stocks.

About Hamilton Insurance Group

Hamilton Insurance Group, Ltd., through its subsidiaries, provides underwriting specialty insurance and reinsurance risks in Bermuda and internationally. The company operates Hamilton Global Specialty, Hamilton Select, and Hamilton Re underwriting platforms. The company offers casualty reinsurance products, such as commercial motor, general liability, healthcare, multiline, personal motor, professional liability, umbrella and excess casualty, and worker's compensation and employer's liability reinsurance; property reinsurance and insurance; and specialty reinsurance solutions, including accident and health, aviation and space, crisis management, mortgage, financial lines, marine and energy, and multiline specialty. In addition, it offers accident and health, cyber, energy, environmental, financial lines, fine art and specie, kidnap and ransom, mergers and acquisitions, marine and energy liability, political risk and violence, professional liability, property binders, property direct and facultative, professional lines, space, upstream energy, excess casualty, war and terrorism, allied medical, management liability, medical professionals, general liability, products liability and contractors, and small business casualty insurance plans, as well as surety and treaty reinsurance products. The company was incorporated in 2013 and is headquartered in Pembroke, Bermuda.

About Universal Insurance

Universal Insurance Holdings, Inc., together with its subsidiaries, operates as an integrated insurance holding company in the United States. It develops, markets, and underwrites insurance products for personal residential insurance, such as homeowners, renters/tenants, condo unit owners, and dwelling/fire; and offers allied lines, coverage for other structures, and personal property, liability, and personal articles coverages. The company also advises on actuarial issues, oversees distribution, administers claims payments, performs policy administration and underwriting, and assists with reinsurance negotiations; places and manages reinsurance programs for the insurance entities; and operates Clovered.com, a digital agency for various carrier partners and utilization of digital applications for adjusting claims. It offers its products through a network of independent agents, as well as direct-to-consumer online solutions, including digital insurance agency. The company was formerly known as Universal Heights, Inc. and changed its name to Universal Insurance Holdings, Inc. in January 2001. Universal Insurance Holdings, Inc. was incorporated in 1990 and is headquartered in Fort Lauderdale, Florida.