Watford (NASDAQ:WTRE) and United Insurance (NASDAQ:UIHC) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Watford and United Insurance, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Watford 0 3 0 0 2.00
United Insurance 0 2 0 0 2.00

Watford currently has a consensus target price of $28.00, indicating a potential upside of 7.78%. United Insurance has a consensus target price of $17.50, indicating a potential upside of 21.95%. Given United Insurance’s higher probable upside, analysts plainly believe United Insurance is more favorable than Watford.

Earnings & Valuation

This table compares Watford and United Insurance’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Watford N/A N/A N/A N/A N/A
United Insurance $723.94 million 0.86 $290,000.00 $0.38 37.76

United Insurance has higher revenue and earnings than Watford.

Profitability

This table compares Watford and United Insurance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Watford N/A N/A N/A
United Insurance 0.18% 0.49% 0.12%

Dividends

United Insurance pays an annual dividend of $0.24 per share and has a dividend yield of 1.7%. Watford does not pay a dividend. United Insurance pays out 63.2% of its earnings in the form of a dividend.

Institutional and Insider Ownership

0.9% of Watford shares are held by institutional investors. Comparatively, 35.8% of United Insurance shares are held by institutional investors. 52.5% of United Insurance shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

United Insurance beats Watford on 8 of the 9 factors compared between the two stocks.

About Watford

Watford Holdings Ltd., together with its subsidiaries, operates as a property, casualty, and mortgage insurance and reinsurance company worldwide. The company was founded in 2013 and is headquartered in Pembroke, Bermuda.

About United Insurance

United Insurance Holdings Corp. operates as a property and casualty insurance holding company that sources, writes, and services residential personal and commercial property, and casualty insurance policies in the United States. The company offers structure, content, and liability coverage for standard single-family homeowners, renters, and condominium unit owners, as well as dwelling fire policies. It also provides commercial multi-peril property insurance for residential condominium associations, as well as loss or damage to buildings, inventory, or equipment caused by covered cause of loss, such as fire, wind, hail, water, theft, and vandalism. In addition, the company offers flood, equipment breakdown, and identity theft policies. It markets and distributes its products through a network of independent agencies in Connecticut, Florida, Georgia, Hawaii, Louisiana, Massachusetts, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Texas. United Insurance Holdings Corp. was founded in 1999 and is headquartered in St. Petersburg, Florida.

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