United Fire Group (NASDAQ:UFCS – Get Free Report) and Global Indemnity Group (NASDAQ:GBLI – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.
Volatility & Risk
United Fire Group has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, Global Indemnity Group has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations for United Fire Group and Global Indemnity Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United Fire Group | 0 | 1 | 2 | 1 | 3.00 |
| Global Indemnity Group | 0 | 1 | 0 | 0 | 2.00 |
United Fire Group currently has a consensus target price of $51.50, suggesting a potential downside of 0.02%. Given United Fire Group’s stronger consensus rating and higher possible upside, research analysts clearly believe United Fire Group is more favorable than Global Indemnity Group.
Dividends
United Fire Group pays an annual dividend of $0.80 per share and has a dividend yield of 1.6%. Global Indemnity Group pays an annual dividend of $1.40 per share and has a dividend yield of 6.4%. United Fire Group pays out 15.3% of its earnings in the form of a dividend. Global Indemnity Group pays out 66.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Global Indemnity Group has increased its dividend for 1 consecutive years. Global Indemnity Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares United Fire Group and Global Indemnity Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United Fire Group | 9.06% | 14.57% | 3.50% |
| Global Indemnity Group | 6.74% | 4.69% | 1.94% |
Earnings and Valuation
This table compares United Fire Group and Global Indemnity Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United Fire Group | $1.39 billion | 0.96 | $118.19 million | $5.23 | 9.85 |
| Global Indemnity Group | $450.10 million | 0.71 | $25.33 million | $2.10 | 10.45 |
United Fire Group has higher revenue and earnings than Global Indemnity Group. United Fire Group is trading at a lower price-to-earnings ratio than Global Indemnity Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
62.7% of United Fire Group shares are held by institutional investors. Comparatively, 37.4% of Global Indemnity Group shares are held by institutional investors. 6.1% of United Fire Group shares are held by insiders. Comparatively, 47.1% of Global Indemnity Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
United Fire Group beats Global Indemnity Group on 14 of the 18 factors compared between the two stocks.
About United Fire Group
United Fire Group, Inc. is an insurance holding company headquartered in Cedar Rapids, Iowa. Founded in 1946 as United Fire & Casualty Company, it has grown into a group of insurance companies serving customers across the United States, primarily through independent agents. The company focuses on property and casualty insurance, with products for businesses that include commercial property and liability coverage, workers’ compensation, specialty insurance and surety bonds. Its offerings are designed to address risks across a range of industries and business needs.
About Global Indemnity Group
Global Indemnity Group, LLC (NASDAQ: GBLI) is an insurance holding company that provides specialty property and casualty insurance and reinsurance products. Its business is focused on risks that may require specialized underwriting expertise, including commercial, professional and personal insurance exposures. Through its operating subsidiaries, the company offers products in areas such as excess and surplus lines, commercial property and casualty coverage, specialty personal lines, and other niche insurance markets.
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