Everest Re Group (NYSE:RE) and United Fire Group (NASDAQ:UFCS) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.
This is a breakdown of recent ratings and recommmendations for Everest Re Group and United Fire Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Everest Re Group||0||5||3||0||2.38|
|United Fire Group||0||1||1||0||2.50|
Risk and Volatility
Everest Re Group has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, United Fire Group has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500.
Everest Re Group pays an annual dividend of $5.60 per share and has a dividend yield of 2.5%. United Fire Group pays an annual dividend of $1.24 per share and has a dividend yield of 2.3%. Everest Re Group pays out 61.5% of its earnings in the form of a dividend. Everest Re Group has increased its dividend for 6 consecutive years and United Fire Group has increased its dividend for 5 consecutive years. Everest Re Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
99.7% of Everest Re Group shares are owned by institutional investors. Comparatively, 62.7% of United Fire Group shares are owned by institutional investors. 1.3% of Everest Re Group shares are owned by company insiders. Comparatively, 6.2% of United Fire Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Everest Re Group and United Fire Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Everest Re Group||$6.61 billion||1.36||$468.96 million||$9.10||24.22|
|United Fire Group||$1.05 billion||1.28||$51.02 million||N/A||N/A|
Everest Re Group has higher revenue and earnings than United Fire Group.
This table compares Everest Re Group and United Fire Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Everest Re Group||14.19%||11.82%||4.12%|
|United Fire Group||9.44%||5.00%||1.49%|
Everest Re Group beats United Fire Group on 12 of the 16 factors compared between the two stocks.
About Everest Re Group
Everest Re Group, Ltd., through its subsidiaries, provides reinsurance and insurance products. The company operates through the U.S. Reinsurance, International, Bermuda, and Insurance segments. The U.S. Reinsurance segment writes property and casualty reinsurance; and specialty lines of business, including marine, aviation, surety, and accident and health insurance through reinsurance brokers, as well as directly with ceding companies in the Unites States. The International segment writes foreign property and casualty reinsurance in Canada, Singapore, Brazil, Miami, and New Jersey. The Bermuda segment provides reinsurance and insurance to property and casualty markets through brokers and directly with ceding companies in Bermuda; and reinsurance to the United Kingdom and European markets. The Insurance segment writes property and casualty insurance products directly, as well as through general agents, brokers, and surplus lines brokers in the United States and Canada. The company also provides property and casualty reinsurance and insurance coverages, such as errors and omissions liability, directors' and officers' liability, medical malpractice, and worker's compensation products. Everest Re Group, Ltd. was founded in 1973 and is headquartered in Hamilton, Bermuda.
About United Fire Group
United Fire Group, Inc., together with its subsidiaries, provides insurance protection for individuals and businesses in the United States. The company operates through two segments, Property and Casualty Insurance, and Life Insurance. The Property and Casualty Insurance segment offers commercial and personal lines of property and casualty insurance, as well as assumed reinsurance products. Its commercial policies include fire and allied lines, other liability, automobile, workers' compensation, and surety coverage; and personal lines consists of automobile, and fire and allied lines coverage, including homeowners. The Life Insurance segment underwrites deferred and immediate fixed annuities; universal life insurance products; and traditional life insurance products, such as term life insurance and whole life insurance products. The company sells its products through a network of independent agencies. United Fire Group, Inc. was founded in 1946 and is headquartered in Cedar Rapids, Iowa.
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