Head-To-Head Survey: Universal Insurance (NYSE:UVE) versus Everest Re Group (RE)

Everest Re Group (NYSE:RE) and Universal Insurance (NYSE:UVE) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Risk and Volatility

Everest Re Group has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, Universal Insurance has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Everest Re Group 3.19% 3.08% 1.03%
Universal Insurance 13.48% 25.99% 7.67%

Analyst Recommendations

This is a summary of current recommendations and price targets for Everest Re Group and Universal Insurance, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Everest Re Group 0 7 2 0 2.22
Universal Insurance 0 1 0 0 2.00

Everest Re Group currently has a consensus price target of $252.11, indicating a potential upside of 0.88%. Universal Insurance has a consensus price target of $44.00, indicating a potential upside of 55.70%. Given Universal Insurance’s higher probable upside, analysts plainly believe Universal Insurance is more favorable than Everest Re Group.

Valuation and Earnings

This table compares Everest Re Group and Universal Insurance’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Everest Re Group $7.38 billion 1.38 $103.55 million $4.65 53.74
Universal Insurance $823.82 million 1.19 $117.05 million N/A N/A

Universal Insurance has lower revenue, but higher earnings than Everest Re Group.

Insider & Institutional Ownership

91.3% of Everest Re Group shares are held by institutional investors. Comparatively, 73.6% of Universal Insurance shares are held by institutional investors. 1.4% of Everest Re Group shares are held by company insiders. Comparatively, 10.6% 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 stock will outperform the market over the long term.

Dividends

Everest Re Group pays an annual dividend of $5.60 per share and has a dividend yield of 2.2%. Universal Insurance pays an annual dividend of $0.64 per share and has a dividend yield of 2.3%. Everest Re Group pays out 120.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Everest Re Group has increased its dividend for 6 consecutive years.

Summary

Universal Insurance beats Everest Re Group on 9 of the 16 factors compared between the two stocks.

Everest Re Group Company Profile

Everest Re Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Bermuda, and internationally. The company operates through four segments: U.S. Reinsurance, International, Bermuda, and Insurance. The U.S. Reinsurance segment writes property and casualty reinsurance; and specialty lines of business, including marine, aviation, surety, and accident and health insurance through reinsurance brokers, as well as directly with ceding companies in the United States. The International segment writes property and casualty reinsurance in Canada, Singapore, Brazil, Miami, and New Jersey. The Bermuda segment provides reinsurance and insurance to property and casualty markets through brokers and directly with ceding companies in Bermuda; and reinsurance to the United Kingdom and European markets. The Insurance segment writes property and casualty insurance products directly, as well as through general agents, brokers, and surplus lines brokers in the United States, Canada, and Europe. The company also provides property and casualty reinsurance and insurance coverages, such as errors and omissions liability, directors' and officers' liability, medical malpractice, and worker's compensation products. Everest Re Group, Ltd. was founded in 1973 and is headquartered in Hamilton, Bermuda.

Universal Insurance Company Profile

Universal Insurance Holdings, Inc., together with its subsidiaries, operates as an integrated insurance holding company in the United States. The company develops, markets, and underwrites insurance products for personal residential homeowner's insurance. It also provides personal residential insurance, such as homeowners, renters/tenants, condo unit owners, and dwelling/fire, and commercial residential multi-peril; and allied lines, coverage for other structures, and personal property, as well as liability and personal articles coverages. In addition, the company offers policy and claims administration, and reinsurance intermediary services, as well as operates Universal Direct, a direct-to-consumer online platform, which enables homeowners to directly purchase, pay for, and bind homeowners' policies. It provides its products through a network of independent agents. 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 founded in 1990 and is headquartered in Fort Lauderdale, Florida.

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