Financial Analysis: Unico American Corporation (UNAM) and W.R. Berkley Corporation (WRB)
Unico American Corporation (NASDAQ: UNAM) and W.R. Berkley Corporation (NYSE:WRB) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitabiliy, risk and earnings.
Institutional and Insider Ownership
29.7% of Unico American Corporation shares are held by institutional investors. Comparatively, 72.2% of W.R. Berkley Corporation shares are held by institutional investors. 54.1% of Unico American Corporation shares are held by insiders. Comparatively, 22.6% of W.R. Berkley Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a summary of recent ratings and target prices for Unico American Corporation and W.R. Berkley Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Unico American Corporation||0||0||0||0||N/A|
|W.R. Berkley Corporation||1||6||1||0||2.00|
W.R. Berkley Corporation has a consensus price target of $61.80, indicating a potential downside of 9.95%. Given W.R. Berkley Corporation’s higher possible upside, analysts plainly believe W.R. Berkley Corporation is more favorable than Unico American Corporation.
Earnings & Valuation
This table compares Unico American Corporation and W.R. Berkley Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Unico American Corporation||$35.70 million||1.46||-$4.61 million||($0.63)||-15.63|
|W.R. Berkley Corporation||$7.71 billion||1.08||$1.14 billion||$4.73||14.51|
W.R. Berkley Corporation has higher revenue and earnings than Unico American Corporation. Unico American Corporation is trading at a lower price-to-earnings ratio than W.R. Berkley Corporation, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Unico American Corporation has a beta of -0.47, meaning that its share price is 147% less volatile than the S&P 500. Comparatively, W.R. Berkley Corporation has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.
This table compares Unico American Corporation and W.R. Berkley Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Unico American Corporation||-9.39%||-4.89%||-2.40%|
|W.R. Berkley Corporation||7.86%||7.67%||1.67%|
W.R. Berkley Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. Unico American Corporation does not pay a dividend. W.R. Berkley Corporation pays out 11.8% of its earnings in the form of a dividend. Unico American Corporation has raised its dividend for 7 consecutive years.
W.R. Berkley Corporation beats Unico American Corporation on 11 of the 15 factors compared between the two stocks.
About Unico American Corporation
Unico American Corporation is an insurance holding company. The Company underwrites property and casualty insurance through its insurance company subsidiary. It also provides property, casualty and health insurance through its agency subsidiaries and provides insurance premium financing and membership association services through its other subsidiaries. The Company’s operations are categorized between the Company’s segment, the insurance company operation and other insurance operations. The Company’s remaining operations constitute a range of specialty insurance services. The Company’s insurance company operation is conducted through Crusader Insurance Company (Crusader), its property and casualty insurance company. Crusader is a multiple line property and casualty insurance company. Crusader is licensed as an admitted insurance carrier in the states of Arizona, California, Nevada, Oregon and Washington.
About W.R. Berkley Corporation
W. R. Berkley Corporation is an insurance holding company. It operates through two segments: Insurance and Reinsurance-Global. The Insurance segment consists of its commercial insurance business operations, comprising excess and surplus lines, and admitted lines, throughout the United States, as well as its insurance business operations in the United Kingdom, Continental Europe, South America, Canada, Mexico, Scandinavia, Asia and Australia. Its Insurance segment comprises business units, such as Acadia Insurance, American Mining Insurance Group, Berkley Accident and Health, Berkley Agribusiness Risk Specialists, Berkley Aviation and Berkley Canada. Reinsurance consists of its reinsurance business on a facultative and treaty basis, in the United States, the United Kingdom, Continental Europe, Australia, the Asia-Pacific region and South Africa. Its Reinsurance segment comprises business units, such as Berkley Re America, Berkley Re Asia Pacific, Berkley Re Direct and Berkley Re UK.
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