Palomar (NASDAQ:PLMR) & Unico American (NASDAQ:UNAM) Head-To-Head Contrast

Unico American (NASDAQ:UNAMGet Rating) and Palomar (NASDAQ:PLMRGet Rating) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Institutional and Insider Ownership

18.3% of Unico American shares are held by institutional investors. Comparatively, 86.8% of Palomar shares are held by institutional investors. 44.5% of Unico American shares are held by insiders. Comparatively, 4.4% of Palomar shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Unico American and Palomar, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Unico American 0 0 0 0 N/A
Palomar 0 0 5 0 3.00

Palomar has a consensus target price of $81.17, suggesting a potential downside of 3.58%. Given Palomar’s higher possible upside, analysts clearly believe Palomar is more favorable than Unico American.

Risk & Volatility

Unico American has a beta of -0.03, meaning that its stock price is 103% less volatile than the S&P 500. Comparatively, Palomar has a beta of 0.02, meaning that its stock price is 98% less volatile than the S&P 500.

Valuation and Earnings

This table compares Unico American and Palomar’s top-line 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 0.25 -$5.67 million ($3.61) -0.47
Palomar $247.79 million 8.58 $45.85 million $1.78 47.29

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

Profitability

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

Net Margins Return on Equity Return on Assets
Unico American -38.57% -41.04% -9.41%
Palomar 15.41% 14.95% 6.00%

Summary

Palomar beats Unico American on 12 of the 13 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 Palomar

(Get Rating)

Palomar Holdings, Inc., an insurance holding company, provides specialty property insurance to residential and commercial customers. The company offers personal and commercial specialty property insurance products, including residential and commercial earthquake, commercial all risk, specialty homeowners, inland marine, Hawaii hurricane, and residential flood, as well as other products, such as assumed reinsurance, commercial flood, real estate error and omission, and real estate investor products. It markets and distributes its products through retail agents, wholesale brokers, program administrators, and carrier partnerships. The company was formerly known as GC Palomar Holdings. Palomar Holdings, Inc. was incorporated in 2013 and is headquartered in La Jolla, California.

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