Reviewing Baldwin Insurance Group (NASDAQ:BWIN) and Universal Insurance (NYSE:UVE)

Baldwin Insurance Group (NASDAQ:BWIN) and Universal Insurance (NYSE:UVE) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Insider & Institutional Ownership

77.5% of Baldwin Insurance Group shares are held by institutional investors. Comparatively, 66.6% of Universal Insurance shares are held by institutional investors. 15.8% of Baldwin Insurance Group shares are held by insiders. Comparatively, 15.0% of Universal Insurance shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Baldwin Insurance Group and Universal Insurance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baldwin Insurance Group	2	9	1	0	1.92
Universal Insurance	0	2	0	1	2.67

Baldwin Insurance Group currently has a consensus price target of $31.20, suggesting a potential downside of 2.04%. Universal Insurance has a consensus price target of $45.00, suggesting a potential downside of 2.99%. Given Baldwin Insurance Group’s higher probable upside, equities research analysts clearly believe Baldwin Insurance Group is more favorable than Universal Insurance.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Baldwin Insurance Group	-4.67%	12.67%	3.32%
Universal Insurance	13.49%	37.67%	7.12%

Valuation & Earnings

This table compares Baldwin Insurance Group and Universal Insurance”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baldwin Insurance Group	$1.72 billion	2.58	-$33.81 million	($1.04)	-30.62
Universal Insurance	$1.63 billion	0.79	$182.95 million	$7.58	6.12

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

Volatility and Risk

Baldwin Insurance Group has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Universal Insurance has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.

Summary

Universal Insurance beats Baldwin Insurance Group on 8 of the 15 factors compared between the two stocks.

About Baldwin Insurance Group

The Baldwin Insurance Group, Inc. operates as an independent insurance distribution firm that delivers insurance and risk management solutions in the United States. It operates through three segments: Insurance Advisory Solutions; Underwriting, Capacity & Technology Solutions; and Mainstreet Insurance Solutions. The Insurance Advisory Solutions segment provides commercial risk management, employee benefits, and private risk management solutions for businesses and high-net-worth individuals, as well as their families. The Underwriting, Capacity & Technology Solutions segment offers Future platform, that manufactures technology-enabled insurance products suite comprises personal, commercial, and specialty lines; specialty wholesale broker business that delivers professionals, individuals, and niche industry businesses; and reinsurance brokerage services. The Mainstreet Insurance Solutions segment provides personal insurance, commercial insurance, and life and health solutions to individuals and businesses in communities. The company was formerly known as BRP Group, Inc. and changed its name to The Baldwin Insurance Group, Inc. in May 2024. The Baldwin Insurance Group, Inc. was founded in 2011 and is headquartered in Tampa, Florida.

About Universal Insurance

Universal Insurance Holdings, Inc., together with its subsidiaries, operates as an integrated insurance holding company in the United States. It develops, markets, and underwrites insurance products for personal residential insurance, such as homeowners, renters/tenants, condo unit owners, and dwelling/fire; and offers allied lines, coverage for other structures, and personal property, liability, and personal articles coverages. The company also advises on actuarial issues, oversees distribution, administers claims payments, performs policy administration and underwriting, and assists with reinsurance negotiations; places and manages reinsurance programs for the insurance entities; and operates Clovered.com, a digital agency for various carrier partners and utilization of digital applications for adjusting claims. It offers its products through a network of independent agents, as well as direct-to-consumer online solutions, including digital insurance agency. The company was formerly known as Universal Heights, Inc. and changed its name to Universal Insurance Holdings, Inc. in January 2001. Universal Insurance Holdings, Inc. was incorporated in 1990 and is headquartered in Fort Lauderdale, Florida.