Heritage Insurance (NYSE:HRTG) versus Universal Insurance (NYSE:UVE) Head-To-Head Contrast

Heritage Insurance (NYSE:HRTG) and Universal Insurance (NYSE:UVE) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Earnings and Valuation

This table compares Heritage Insurance and Universal Insurance”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heritage Insurance	$847.33 million	1.16	$195.59 million	$7.11	4.67
Universal Insurance	$1.60 billion	0.80	$182.95 million	$8.00	5.83

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

Institutional and Insider Ownership

59.0% of Heritage Insurance shares are held by institutional investors. Comparatively, 66.6% of Universal Insurance shares are held by institutional investors. 9.2% of Heritage Insurance shares are held by company insiders. Comparatively, 15.0% 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 company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Heritage Insurance and Universal Insurance, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heritage Insurance	0	3	3	0	2.50
Universal Insurance	0	1	0	2	3.33

Heritage Insurance currently has a consensus target price of $37.50, suggesting a potential upside of 13.00%. Universal Insurance has a consensus target price of $51.00, suggesting a potential upside of 9.32%. Given Heritage Insurance’s higher probable upside, analysts clearly believe Heritage Insurance is more favorable than Universal Insurance.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Heritage Insurance	25.07%	40.67%	9.72%
Universal Insurance	13.94%	38.15%	7.63%

Volatility and Risk

Heritage Insurance has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Universal Insurance has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.

Summary

Heritage Insurance beats Universal Insurance on 8 of the 15 factors compared between the two stocks.

About Heritage Insurance

Heritage Insurance Holdings, Inc., through its subsidiaries, provides personal and commercial residential insurance products. The company offers personal residential insurance in Alabama, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Virginia; commercial residential insurance for properties in Florida, New Jersey, and New York; and licensed in the state of Pennsylvania, as well as personal residential and wind-only property insurance. It also provides restoration, emergency, and recovery services; property management, and reinsurance services; homeowners insurance products, including single-family, homeowners or duplex, and condominium owners; and dwelling fire insurance policies. In addition, the company provides personal line policies through a network of retail independent agents, wholesale agents, and a partnership with a direct agency, as well as distribute indirectly to retail locations through wholesale agency relationships. Further, it offers personal and commercial insurance policies through a network of independent agencies. The company was founded in 2012 and is headquartered in Tampa, Florida.

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.