United Insurance Holdings Corp. (NASDAQ: UIHC) and Argo Group International Holdings (NASDAQ:AGII) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitabiliy, valuation, dividends, earnings and risk.
This table compares United Insurance Holdings Corp. and Argo Group International Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|United Insurance Holdings Corp.||1.32%||2.64%||0.68%|
|Argo Group International Holdings||10.04%||6.47%||1.56%|
Risk & Volatility
United Insurance Holdings Corp. has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, Argo Group International Holdings has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for United Insurance Holdings Corp. and Argo Group International Holdings, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United Insurance Holdings Corp.||0||1||2||1||3.00|
|Argo Group International Holdings||1||1||0||0||1.50|
United Insurance Holdings Corp. presently has a consensus target price of $15.25, suggesting a potential downside of 4.81%. Argo Group International Holdings has a consensus target price of $70.00, suggesting a potential upside of 19.66%. Given Argo Group International Holdings’ higher probable upside, analysts plainly believe Argo Group International Holdings is more favorable than United Insurance Holdings Corp..
Earnings and Valuation
This table compares United Insurance Holdings Corp. and Argo Group International Holdings’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|United Insurance Holdings Corp.||$502.19 million||0.69||$22.70 million||$0.30||53.40|
|Argo Group International Holdings||$1.62 billion||1.09||$231.40 million||$5.54||10.56|
Argo Group International Holdings has higher revenue and earnings than United Insurance Holdings Corp.. Argo Group International Holdings is trading at a lower price-to-earnings ratio than United Insurance Holdings Corp., indicating that it is currently the more affordable of the two stocks.
United Insurance Holdings Corp. pays an annual dividend of $0.24 per share and has a dividend yield of 1.5%. Argo Group International Holdings pays an annual dividend of $1.08 per share and has a dividend yield of 1.8%. United Insurance Holdings Corp. pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Argo Group International Holdings pays out 19.5% of its earnings in the form of a dividend. Argo Group International Holdings is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
27.8% of United Insurance Holdings Corp. shares are owned by institutional investors. Comparatively, 88.4% of Argo Group International Holdings shares are owned by institutional investors. 22.6% of United Insurance Holdings Corp. shares are owned by company insiders. Comparatively, 4.9% of Argo Group International Holdings shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Argo Group International Holdings beats United Insurance Holdings Corp. on 11 of the 17 factors compared between the two stocks.
About United Insurance Holdings Corp.
United Insurance Holdings Corp. is a property and casualty insurance holding company that sources, writes and services residential property and casualty insurance policies using a network of agents and a group of insurance subsidiaries. The Company’s insurance subsidiary is United Property & Casualty Insurance Company. Its other subsidiaries include United Insurance Management, L.C., the managing general agent that manages substantially all aspects of United Property & Casualty Insurance Company’s business; Skyway Claims Services, LLC, which provides services to its insurance affiliate; UPC Re, which provides a portion of the reinsurance protection purchased by its insurance affiliate. The Company’s principal product is homeowners’ insurance, which it offers in Connecticut, Florida, Georgia, Hawaii, Louisiana, Massachusetts, New Jersey, North Carolina, Rhode Island, South Carolina and Texas.
About Argo Group International Holdings
Argo Group International Holdings, Ltd. is an underwriter of specialty insurance and reinsurance products in the property and casualty market. The Company operates through four segments: Excess and Surplus Lines, Commercial Specialty, International Specialty and Syndicate 1200. Excess and Surplus Lines segment carriers focus on risks that the standard (admitted) market is unwilling or unable to underwrite. The Excess and Surplus Lines segment consists of two operating platforms: Colony Specialty and Argo Pro. Commercial Specialty segment provides property, casualty and surety coverages designed to meet the insurance needs of businesses within certain markets. International Specialty segment underwrites insurance and reinsurance risks. It operate as Argo Re, the Casualty and Professional Lines unit of Argo Insurance in Bermuda, and Argo Seguros Brazil, S.A. in Brazil. The Syndicate 1200 segment underwrites around the world property, specialty and non-United States liability insurance.
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