Universal Insurance (NYSE:UVE) versus Oxbridge Re (NASDAQ:OXBR) Head to Head Contrast

Universal Insurance (NYSE:UVE) and Oxbridge Re (NASDAQ:OXBR) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for Universal Insurance and Oxbridge Re, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Insurance	0	1	0	2	3.33
Oxbridge Re	1	1	1	0	2.00

Universal Insurance currently has a consensus price target of $51.00, indicating a potential upside of 4.96%. Oxbridge Re has a consensus price target of $3.00, indicating a potential upside of 213.48%. Given Oxbridge Re’s higher possible upside, analysts clearly believe Oxbridge Re is more favorable than Universal Insurance.

Valuation & Earnings

This table compares Universal Insurance and Oxbridge Re”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Insurance	$1.60 billion	0.84	$182.95 million	$8.00	6.07
Oxbridge Re	$2.58 million	3.02	-$2.08 million	($0.01)	-95.70

Universal Insurance has higher revenue and earnings than Oxbridge Re. Oxbridge Re is trading at a lower price-to-earnings ratio than Universal Insurance, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

66.6% of Universal Insurance shares are owned by institutional investors. Comparatively, 5.6% of Oxbridge Re shares are owned by institutional investors. 15.0% of Universal Insurance shares are owned by company insiders. Comparatively, 16.3% of Oxbridge Re shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Universal Insurance has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Oxbridge Re has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500.

Profitability

This table compares Universal Insurance and Oxbridge Re’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Insurance	13.94%	38.15%	7.63%
Oxbridge Re	-4.29%	-1.63%	-0.72%

Summary

Universal Insurance beats Oxbridge Re on 10 of the 15 factors compared between the two stocks.

About Universal Insurance

Universal Insurance Holdings, Inc. is a property and casualty insurance holding company whose subsidiaries provide coverage primarily for residential properties. Its products include homeowners, renters, condominium, dwelling fire and other property insurance. The company conducts business through insurance and distribution subsidiaries, serving customers in Florida and other U.S. states. Its operations include underwriting, policy distribution, claims handling and risk management, with products generally sold through independent agents.

About Oxbridge Re

Oxbridge Re Holdings Limited is a specialty reinsurance holding company listed on the Nasdaq Capital Market under the symbol OXBR. The company conducts its reinsurance activities primarily through Oxbridge Reinsurance Limited, a Bermuda-based subsidiary, and focuses on providing collateralized property catastrophe reinsurance. Its coverage is designed to protect insurance companies against losses from major natural-catastrophe events, including hurricanes and other severe weather-related disasters.