UNIVERSAL INSURANCE HOLDINGS INC (NYSE: UVE) and Berkshire Hathaway (NYSE:BRK-B) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.
Insider & Institutional Ownership
73.5% of UNIVERSAL INSURANCE HOLDINGS INC shares are held by institutional investors. 10.5% of UNIVERSAL INSURANCE HOLDINGS INC shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Risk and Volatility
UNIVERSAL INSURANCE HOLDINGS INC has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500. Comparatively, Berkshire Hathaway has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.
Valuation & Earnings
This table compares UNIVERSAL INSURANCE HOLDINGS INC and Berkshire Hathaway’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|UNIVERSAL INSURANCE HOLDINGS INC||$685.29 million||1.27||$99.41 million||$2.34||10.79|
UNIVERSAL INSURANCE HOLDINGS INC has higher revenue and earnings than Berkshire Hathaway. Berkshire Hathaway is trading at a lower price-to-earnings ratio than UNIVERSAL INSURANCE HOLDINGS INC, indicating that it is currently the more affordable of the two stocks.
UNIVERSAL INSURANCE HOLDINGS INC pays an annual dividend of $0.56 per share and has a dividend yield of 2.2%. Berkshire Hathaway does not pay a dividend. UNIVERSAL INSURANCE HOLDINGS INC pays out 23.9% of its earnings in the form of a dividend. UNIVERSAL INSURANCE HOLDINGS INC has raised its dividend for 3 consecutive years.
This is a summary of recent ratings and target prices for UNIVERSAL INSURANCE HOLDINGS INC and Berkshire Hathaway, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|UNIVERSAL INSURANCE HOLDINGS INC||0||0||1||0||3.00|
UNIVERSAL INSURANCE HOLDINGS INC presently has a consensus price target of $29.00, indicating a potential upside of 14.85%. Given UNIVERSAL INSURANCE HOLDINGS INC’s higher possible upside, equities research analysts plainly believe UNIVERSAL INSURANCE HOLDINGS INC is more favorable than Berkshire Hathaway.
This table compares UNIVERSAL INSURANCE HOLDINGS INC and Berkshire Hathaway’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|UNIVERSAL INSURANCE HOLDINGS INC||11.55%||20.90%||6.30%|
UNIVERSAL INSURANCE HOLDINGS INC beats Berkshire Hathaway on 11 of the 13 factors compared between the two stocks.
UNIVERSAL INSURANCE HOLDINGS INC Company Profile
Universal Insurance Holdings, Inc. (UVE) is a private personal residential homeowners insurance company in Florida. The Company performs substantially all aspects of insurance underwriting, policy issuance, general administration, and claims processing and settlement internally. The Company’s subsidiaries include Universal Property & Casualty Insurance Company (UPCIC) and American Platinum Property and Casualty Insurance Company (APPCIC). UPCIC writes homeowners insurance policies in states, including Alabama, Delaware, Florida, Georgia, Hawaii, Indiana, Maryland, Massachusetts, Michigan, Minnesota, North Carolina, Pennsylvania, South Carolina and Virginia. APPCIC writes homeowners and commercial residential insurance policies in Florida. The Company has developed a suite of applications that provide underwriting, policy and claim administration services, including billing, policy maintenance, inspections, refunds, commissions and data analysis.
Berkshire Hathaway Company Profile
Berkshire Hathaway Inc. is a holding company owning subsidiaries engaged in various business activities. Its segments include Insurance, such as GEICO, Berkshire Hathaway Primary Group, General Re Corporation and Berkshire Hathaway Reinsurance Group; Burlington Northern Santa Fe, LLC, which is engaged in the operation of the railroad system; Berkshire Hathaway Energy, which includes regulated electric and gas utility; Manufacturing, which includes manufacturers of various products, including industrial, consumer and building products; McLane Company, which is engaged in the wholesale distribution of groceries and non-food items; Service and retailing, which includes providers of various services, including fractional aircraft ownership programs, aviation pilot training and various retailing businesses, and Finance and financial products, which includes manufactured housing and related consumer financing, transportation equipment, manufacturing and leasing, and furniture leasing.
Receive News & Ratings for UNIVERSAL INSURANCE HOLDINGS INC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for UNIVERSAL INSURANCE HOLDINGS INC and related companies with MarketBeat.com's FREE daily email newsletter.