Comparing Universal Insurance (NYSE:UVE) & Security National Financial (NASDAQ:SNFCA)

Universal Insurance (NYSE:UVE) and Security National Financial (NASDAQ:SNFCA) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Valuation & Earnings

This table compares Universal Insurance and Security National Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Insurance	$1.60 billion	0.77	$182.95 million	$7.58	5.82
Security National Financial	$344.59 million	0.71	$32.15 million	$1.39	6.47

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

Volatility and Risk

Universal Insurance has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Security National Financial has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Insider & Institutional Ownership

66.6% of Universal Insurance shares are owned by institutional investors. Comparatively, 45.6% of Security National Financial shares are owned by institutional investors. 15.0% of Universal Insurance shares are owned by company insiders. Comparatively, 15.0% of Security National Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Universal Insurance and Security National Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Insurance	0	2	1	0	2.33
Security National Financial	0	1	0	0	2.00

Universal Insurance presently has a consensus price target of $45.00, indicating a potential upside of 1.96%. Given Universal Insurance’s stronger consensus rating and higher possible upside, research analysts clearly believe Universal Insurance is more favorable than Security National Financial.

Profitability

This table compares Universal Insurance and Security National Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Insurance	13.49%	37.67%	7.12%
Security National Financial	11.10%	9.13%	2.36%

Summary

Universal Insurance beats Security National Financial on 12 of the 13 factors compared between the two stocks.

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.

About Security National Financial

Security National Financial Corporation engages in the life insurance, cemetery and mortuary, and mortgage businesses. The company's Life Insurance segment is involved in selling and servicing lines of life insurance, annuity products, and accident and health insurance. It offers various life insurance products, including funeral plans and interest-sensitive life insurance, as well as other traditional life, accident, and health insurance products; annuity products comprising single and flexible premium deferred annuities, and immediate annuities; and diver's accident insurance policies. This segment also cedes and assumes various risks with various authorized unaffiliated reinsurers pursuant to reinsurance treaties. Its Cemetery and Mortuary segment operates eight mortuaries and five cemeteries in Utah; one cemetery in California; and four mortuaries and one cemetery in New Mexico. This segment also offers plots, interment vaults, mausoleum crypts, markers, caskets, urns, and other death care related products; and provides professional services of funeral directors, opening and closing of graves, use of chapels and viewing rooms, and use of automobiles and clothing. The company's Mortgages segment originates and underwrites residential and commercial loans for new construction, existing homes, and real estate projects primarily in Florida, Nevada, Texas, and Utah. It offers residential mortgage lending services to real estate brokers and builders, as well as directly with consumers. Security National Financial Corporation was founded in 1965 and is headquartered in Salt Lake City, Utah.