Universal insurance (NYSE: UVE) and Fairfax Financial Holdings Ltd subordinated voting shares (OTCMKTS: FRFHF) are both financial companies, but which is the better stock? We will compare the two companies based on their risk, valuation, profitability, profits, dividends, analysts' recommendations and institutional ownership.
This is a breakdown of recent ratings and target prices for the Subordinated Voting Shares of Universal Insurance and Fairfax Financial Holdings Ltd, as reported by MarketBeat.com.
|Sell reviews||Keep ratings||Buy reviews||Strong buy ratings||Rating score|
|Fairfax Financial Holdings Ltd subordinated voting shares||0||0||1||0||3.00|
Universal Insurance currently has a consensus target price of $ 44.00, which represents a potential upside potential of 39.55%. With Universal Insurance's potential higher upside, analysts clearly believe that Universal Insurance is cheaper than the subordinated shares of Fairfax Financial Holdings Ltd.
This table shows the net margin, return on equity and return on investments of Universal Insurance and Fairfax Financial Holdings Ltd.
|net margins||return on equity||return on investment|
|Fairfax Financial Holdings Ltd subordinated voting shares||2.12%||3.14%||0.81%|
Universal Insurance pays an annual dividend of $ 0.64 per share and a dividend yield of 2.0%. Fairfax Financial Holdings Ltd subordinate voting shares pay an annual dividend of $ 10.00 per share and a dividend yield of 2.2%.
Rating & Result
This table compares revenue, EPS and the valuation of Universal Insurance and Fairfax Financial Holdings Ltd subordinated options.
|gross receipts||Price / sales ratio||net income||Earnings per share||Price-earnings ratio|
|Universal insurance||$ 823.82 million||1.34||$ 117.05 million||N / A||N / A|
|Fairfax Financial Holdings Ltd subordinated voting shares||$ 17.76 billion||0.71||$ 376 million||N / A||N / A|
Fairfax Financial Holdings Ltd Subordinate Voting Shares have higher revenues and earnings than Universal Insurance.
Institutional and insider property
74.3% of Universal Insurance shares are held by institutional investors. By comparison, 0.9% of the subordinated shares in Fairfax Financial Holdings Ltd are held by institutional investors. 10.6% of Universal Insurance shares are held by corporate insiders. Strong institutional ownership is an indication that hedge funds, large money managers and foundations expect a company to outperform the market in the long term.
Volatility and risk
Universal Insurance has a beta of 1.24, suggesting that the stock price is 24% more volatile than the S & P 500. In comparison, Fairfax Financial Holdings Ltd's subordinate voting stock has a beta of 0.54 S & P 500.
Universal Insurance has 8 out of 14 factors in Fairfax Financial Holdings Ltd's subordinated voting shares compared to the two shares.
About universal insurance
Universal Insurance Holdings, Inc., together with its subsidiaries, operates as an integrated insurance holding company in the United States. The company primarily offers home insurance. It also insures homeowners insurance. and fire, multiple commercial hazards and other liability. In addition, the company provides policy and claims management and reinsurance brokerage services and operates Universal Direct, a direct online platform that enables homeowners to directly acquire, pay and retain homeowner policies. It offers its products through a network of independent agents. The company was formerly known as Universal Heights, Inc. and was changed to Universal Insurance Holdings, Inc. in January 2001. Universal Insurance Holdings, Inc. was founded in 1990 and is headquartered in Fort Lauderdale, Florida.
About Fairfax Financial Holdings Ltd Subordinated Voting Shares
Fairfax Financial Holdings Limited provides property and casualty insurance and reinsurance and investment management services through its subsidiaries in the United States, Canada, Asia and internationally. The company also specializes in special insurance and reinsurance; develops, produces, markets and sells television programs; and franchises, owns and operates restaurants, restaurants and resorts. In addition, it is involved in the provision of animal health insurance and database services. Retailing of crockery and gift articles and home improvement products, and sporting and sports clothing, including golfing equipment, consumables and sportswear and accessories; Investment in real estate; and providing integrated travel and travel related financial services. The company was formerly known as Markel Financial Holdings Limited and was renamed Fairfax Financial Holdings Limited in 1987. Fairfax Financial Holdings Limited was founded in 1951 and is headquartered in Toronto, Canada.
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