United Fire Group (NASDAQ: UFCS) is one of 85 public companies in the “Property & Casualty Insurance” industry, but how does it compare to its competitors? We will compare United Fire Group to similar companies based on the strength of its analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.
Institutional and Insider Ownership
58.3% of United Fire Group shares are held by institutional investors. Comparatively, 59.4% of shares of all “Property & Casualty Insurance” companies are held by institutional investors. 5.8% of United Fire Group shares are held by company insiders. Comparatively, 15.6% of shares of all “Property & Casualty Insurance” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
United Fire Group pays an annual dividend of $1.12 per share and has a dividend yield of 2.4%. United Fire Group pays out 177.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.3% and pay out 22.5% of their earnings in the form of a dividend.
This is a breakdown of recent ratings and recommmendations for United Fire Group and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United Fire Group||0||2||1||0||2.33|
|United Fire Group Competitors||631||2316||2189||45||2.32|
United Fire Group presently has a consensus price target of $46.33, suggesting a potential downside of 2.50%. As a group, “Property & Casualty Insurance” companies have a potential upside of 8.51%. Given United Fire Group’s competitors higher probable upside, analysts clearly believe United Fire Group has less favorable growth aspects than its competitors.
Earnings and Valuation
This table compares United Fire Group and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|United Fire Group||$1.14 billion||$49.90 million||75.43|
|United Fire Group Competitors||$11.51 billion||$1.16 billion||144.82|
United Fire Group’s competitors have higher revenue and earnings than United Fire Group. United Fire Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This table compares United Fire Group and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|United Fire Group||1.49%||1.32%||0.30%|
|United Fire Group Competitors||7.60%||2.31%||1.53%|
Risk & Volatility
United Fire Group has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, United Fire Group’s competitors have a beta of 0.92, indicating that their average stock price is 8% less volatile than the S&P 500.
United Fire Group competitors beat United Fire Group on 13 of the 15 factors compared.
About United Fire Group
United Fire Group, Inc., formerly United Fire & Casualty Company, is engaged in the business of writing property and casualty insurance and life insurance and selling annuities. The Company operates in two segments: property and casualty insurance, and life insurance. The Company’s property and casualty insurance segment consists of commercial lines insurance, including surety bonds, personal lines insurance and assumed insurance. Its life insurance segment consists of deferred and immediate annuities, universal life insurance products and traditional life insurance products. Its life insurance segment consists solely of the operations of United Life Insurance Company. On February 1, 2012, the Company completed a holding company reorganization of United Fire Group, Inc., United Fire & Casualty Company and UFC MergeCo, Inc. On March 28, 2011, the Company acquired Mercer Insurance Group, Inc. (Mercer Insurance Group).
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