United Fire Group (NASDAQ:UFCS) and Enstar Group (NASDAQ:ESGR) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.
This table compares United Fire Group and Enstar Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|United Fire Group||9.44%||5.00%||1.49%|
United Fire Group has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500. Comparatively, Enstar Group has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.
This is a breakdown of current ratings for United Fire Group and Enstar Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United Fire Group||0||1||1||0||2.50|
United Fire Group currently has a consensus target price of $53.00, indicating a potential downside of 1.76%. Given United Fire Group’s higher probable upside, analysts plainly believe United Fire Group is more favorable than Enstar Group.
Institutional and Insider Ownership
62.7% of United Fire Group shares are held by institutional investors. Comparatively, 70.7% of Enstar Group shares are held by institutional investors. 6.2% of United Fire Group shares are held by insiders. Comparatively, 10.0% of Enstar Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
United Fire Group pays an annual dividend of $1.24 per share and has a dividend yield of 2.3%. Enstar Group does not pay a dividend. United Fire Group has increased its dividend for 5 consecutive years.
Earnings and Valuation
This table compares United Fire Group and Enstar Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|United Fire Group||$1.05 billion||1.28||$51.02 million||N/A||N/A|
|Enstar Group||$1.11 billion||3.47||$311.45 million||N/A||N/A|
Enstar Group has higher revenue and earnings than United Fire Group.
United Fire Group beats Enstar Group on 8 of the 14 factors compared between the two stocks.
United Fire Group Company Profile
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.
Enstar Group Company Profile
Enstar Group Limited acquires and manages insurance and reinsurance companies, and portfolios of insurance and reinsurance business in run-off. It operates in three segments: Non-Life Run-Off, Atrium, and StarStone. The Non-Life Run-Off segment engages in the running off property and casualty, and other non-life lines of businesses. It also provides consulting services, including claims inspection, claims validation, reinsurance asset collection, and IT consulting services to the insurance and reinsurance industry. The Atrium segment is involved in underwriting various classes, including marine, aviation, transit, property and casualty binding authorities, reinsurance, accident and health, and non marine direct and facultative. The StarStone segment offers a range of property, casualty, and specialty insurance products to large multi-national, and small and middle-market clients. The company operates in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and internationally. The company was formerly known as Castlewood Holdings Limited and changed its name to Enstar Group Limited as a result of its merger with The Enstar Group, Inc. in January 2007. Enstar Group Limited was founded in 2001 and is headquartered in Hamilton, Bermuda.
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