XChange TEC.INC. (NASDAQ:XHG – Get Free Report) and United Fire Group (NASDAQ:UFCS – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Profitability
This table compares XChange TEC.INC. and United Fire Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| XChange TEC.INC. | N/A | N/A | N/A |
| United Fire Group | 9.57% | 15.19% | 3.69% |
Analyst Recommendations
This is a summary of current ratings for XChange TEC.INC. and United Fire Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| XChange TEC.INC. | 1 | 0 | 0 | 0 | 1.00 |
| United Fire Group | 0 | 1 | 3 | 0 | 2.75 |
Institutional and Insider Ownership
62.7% of United Fire Group shares are owned by institutional investors. 0.6% of XChange TEC.INC. shares are owned by company insiders. Comparatively, 6.1% of United Fire Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility and Risk
XChange TEC.INC. has a beta of -0.81, meaning that its share price is 181% less volatile than the S&P 500. Comparatively, United Fire Group has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500.
Valuation and Earnings
This table compares XChange TEC.INC. and United Fire Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| XChange TEC.INC. | $51.31 million | 4.64 | -$105.13 million | N/A | N/A |
| United Fire Group | $1.39 billion | 0.99 | $118.19 million | $5.38 | 9.90 |
United Fire Group has higher revenue and earnings than XChange TEC.INC..
Summary
United Fire Group beats XChange TEC.INC. on 11 of the 12 factors compared between the two stocks.
About XChange TEC.INC.
XChange TEC.INC engages in the professional insurance agency business in the People’s Republic of China. The company provides a various insurance products underwritten by insurance companies, including state-owned property and casualty insurance companies, as well as various regional property and casualty insurance companies. It also offers automobile, life, health, group accident, and other property related insurances primarily to individual end consumers. In addition, the company operates a SaaS platform to offer comprehensive services to online customers. It sells insurance primarily through a network of external referral sources that include external registered sales representatives and strategic channel partners, as well as through the in-house sales force. The company was formerly known as FLJ Group Limited and changed its name to XChange TEC.INC in May 2024. XChange TEC.INC was founded in 2012 and is based in Shanghai, the People’s Republic of China.
About United Fire Group
United Fire Group, Inc., together with its subsidiaries, provides property and casualty insurance for individuals and businesses in the United States. The company offers commercial and personal lines of property and casualty insurance; and reinsurance coverage for property and casualty insurance. Its commercial lines include fire and allied lines, other liability, automobile, workers’ compensation, fidelity and surety coverage, and other insurance products; and personal lines comprise automobile, and fire and allied lines coverage, including homeowners, as well as provides assumed reinsurance products. The company sells its products through a network of independent agencies. United Fire Group, Inc. was incorporated in 1946 and is headquartered in Cedar Rapids, Iowa.
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