Comparing Universal Insurance (NYSE:UVE) & Aviva (OTCMKTS:AVVIY)

Aviva (OTCMKTS:AVVIY) 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, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Aviva and Universal Insurance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aviva	0	2	1	1	2.75
Universal Insurance	0	2	1	0	2.33

Universal Insurance has a consensus target price of $45.00, suggesting a potential upside of 2.13%. Given Universal Insurance’s higher possible upside, analysts plainly believe Universal Insurance is more favorable than Aviva.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aviva	$33.54 billion	0.86	$1.36 billion	N/A	N/A
Universal Insurance	$1.60 billion	0.76	$182.95 million	$7.58	5.81

Aviva has higher revenue and earnings than Universal Insurance.

Insider and Institutional Ownership

20.3% of Aviva shares are held by institutional investors. Comparatively, 66.6% of Universal Insurance shares are held by institutional investors. 15.0% of Universal Insurance shares 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.

Dividends

Aviva pays an annual dividend of $1.33 per share and has a dividend yield of 6.9%. Universal Insurance pays an annual dividend of $0.64 per share and has a dividend yield of 1.5%. Universal Insurance pays out 8.4% of its earnings in the form of a dividend.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aviva	N/A	N/A	N/A
Universal Insurance	13.49%	37.67%	7.12%

Risk & Volatility

Aviva has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Universal Insurance has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500.

Summary

Aviva beats Universal Insurance on 8 of the 14 factors compared between the two stocks.

About Aviva

Aviva plc provides various insurance, retirement, investment, and savings products in the United Kingdom, Ireland, Canada, and internationally. The company offers life insurance, long-term health and accident insurance, savings, pension, and annuity products, as well as pension fund business and lifetime mortgage products. It also provides insurance cover to individuals, small and medium-sized businesses for risks associated with motor vehicles and medical expenses, as well as property and liability, such as employers' and professional indemnity liabilities. In addition, the company provides investment management services for institutional pension fund mandates; and manages various retail investment products, including investment funds, unit trusts, open-ended investment companies, and individual savings accounts for third-party financial institutions, pension funds, public sector organizations, investment professionals, and private investors. It markets its products through a network of insurance brokers, as well as MyAviva platform. The company was formerly known as CGNU plc and changed its name to Aviva plc in July 2002. Aviva plc was founded in 1696 and is headquartered in London, the United Kingdom.

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.