Unico American (NASDAQ:UNAM) and United Fire Group (NASDAQ:UFCS) Head to Head Survey

Unico American (NASDAQ:UNAMGet Rating) and United Fire Group (NASDAQ:UFCSGet Rating) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Unico American and United Fire Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Unico American 0 0 0 0 N/A
United Fire Group 0 1 0 0 2.00

United Fire Group has a consensus target price of $37.00, indicating a potential upside of 14.62%. Given United Fire Group’s higher possible upside, analysts plainly believe United Fire Group is more favorable than Unico American.

Insider & Institutional Ownership

18.8% of Unico American shares are owned by institutional investors. Comparatively, 60.7% of United Fire Group shares are owned by institutional investors. 44.5% of Unico American shares are owned by company insiders. Comparatively, 5.7% 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 will outperform the market over the long term.

Profitability

This table compares Unico American and United Fire Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Unico American -15.80% -17.31% -4.27%
United Fire Group 8.93% 8.61% 2.42%

Risk and Volatility

Unico American has a beta of -0.05, meaning that its share price is 105% less volatile than the S&P 500. Comparatively, United Fire Group has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500.

Valuation and Earnings

This table compares Unico American 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
Unico American $36.39 million 0.27 -$5.67 million ($3.61) -0.51
United Fire Group $1.07 billion 0.76 $80.59 million $3.56 9.07

United Fire Group has higher revenue and earnings than Unico American. Unico American is trading at a lower price-to-earnings ratio than United Fire Group, indicating that it is currently the more affordable of the two stocks.

Summary

United Fire Group beats Unico American on 11 of the 12 factors compared between the two stocks.

About Unico American

(Get Rating)

Unico American Corporation, an insurance holding company, underwrites property and casualty insurance in Arizona, California, Nevada, Oregon, and Washington. The company offers property, casualty, health, and life insurance products, as well as insurance premium financing and membership association services. Its commercial property coverage insures against loss or damage to buildings, inventory, and equipment from natural disasters, including hurricanes, windstorms, hail, water, explosions, and severe winter weather, as well as other events, such as theft and vandalism, fires, storms, and financial loss due to business interruption resulting from covered property damage. The company also offers commercial liability coverage that insures against third party liability from accidents occurring on the insured's premises or arising out of its operation; and writes policies to insure commercial property and commercial liability risks on a mono-line basis. In addition, it provides group dental, vision, and life insurance policies. Unico American Corporation markets its insurance products primarily through a network of independent brokers and agents. The company was incorporated in 1969 and is headquartered in Calabasas, California.

About United Fire Group

(Get Rating)

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 commercial multiple peril and inland marine insurance, as well as assumed reinsurance products. Its commercial policies include fire and allied lines, other liability, automobile, workers' compensation, and fidelity and surety coverage; and personal lines comprise automobile, and fire and allied lines coverage, including homeowners. 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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