Intact Financial (OTCMKTS:IFCZF) versus United Fire Group (NASDAQ:UFCS) Critical Comparison

United Fire Group (NASDAQ:UFCS) and Intact Financial (OTCMKTS:IFCZF) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.

Insider & Institutional Ownership

62.7% of United Fire Group shares are owned by institutional investors. 6.1% of United Fire Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares United Fire Group and Intact Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Fire Group	$1.39 billion	0.95	$118.19 million	$5.23	9.76
Intact Financial	$20.46 billion	1.67	$2.41 billion	$11.75	16.57

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

Analyst Recommendations

This is a summary of recent ratings for United Fire Group and Intact Financial, 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
Intact Financial	0	2	3	0	2.60

United Fire Group presently has a consensus price target of $51.50, indicating a potential upside of 0.84%. Given United Fire Group’s stronger consensus rating and higher possible upside, research analysts plainly believe United Fire Group is more favorable than Intact Financial.

Profitability

This table compares United Fire Group and Intact Financial’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%
Intact Financial	10.35%	15.76%	4.81%

Dividends

United Fire Group pays an annual dividend of $0.80 per share and has a dividend yield of 1.6%. Intact Financial pays an annual dividend of $4.24 per share and has a dividend yield of 2.2%. United Fire Group pays out 15.3% of its earnings in the form of a dividend. Intact Financial pays out 36.1% 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.

Summary

Intact Financial beats United Fire Group on 10 of the 16 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 Intact Financial

Intact Financial Corporation is a Canadian property and casualty insurance company that provides coverage to individuals, businesses and organizations. Its products include automobile, home, commercial and specialty insurance, offered through insurance brokers and direct-to-customer channels. Headquartered in Toronto, Intact serves customers in Canada and has an international presence, including in the United Kingdom, Ireland and other European markets. Its international operations expanded significantly with its acquisition of RSA Insurance Group in 2021.