United Insurance Holdings Corp. (NASDAQ: UIHC) and Markel Corporation (NYSE:MKL) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Dividends

United Insurance Holdings Corp. pays an annual dividend of $0.24 per share and has a dividend yield of 1.5%. Markel Corporation does not pay a dividend. United Insurance Holdings Corp. pays out 1,200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

United Insurance Holdings Corp. has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, Markel Corporation has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Valuation and Earnings

This table compares United Insurance Holdings Corp. and Markel Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
United Insurance Holdings Corp. $559.34 million 1.21 $28.75 million $0.02 795.50
Markel Corporation $5.75 billion 2.52 $948.88 million $28.92 36.08

Markel Corporation has higher revenue and earnings than United Insurance Holdings Corp.. Markel Corporation is trading at a lower price-to-earnings ratio than United Insurance Holdings Corp., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares United Insurance Holdings Corp. and Markel Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Insurance Holdings Corp. 0.73% 4.99% 1.34%
Markel Corporation 7.58% 4.81% 1.57%

Insider and Institutional Ownership

29.3% of United Insurance Holdings Corp. shares are owned by institutional investors. Comparatively, 76.6% of Markel Corporation shares are owned by institutional investors. 22.6% of United Insurance Holdings Corp. shares are owned by company insiders. Comparatively, 2.5% of Markel Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for United Insurance Holdings Corp. and Markel Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Insurance Holdings Corp. 0 1 2 1 3.00
Markel Corporation 0 1 1 0 2.50

United Insurance Holdings Corp. currently has a consensus target price of $15.25, suggesting a potential downside of 4.15%. Markel Corporation has a consensus target price of $1,050.00, suggesting a potential upside of 0.63%. Given Markel Corporation’s higher possible upside, analysts plainly believe Markel Corporation is more favorable than United Insurance Holdings Corp..

Summary

Markel Corporation beats United Insurance Holdings Corp. on 9 of the 17 factors compared between the two stocks.

United Insurance Holdings Corp. Company Profile

United Insurance Holdings Corp. is a property and casualty insurance holding company that sources, writes and services residential property and casualty insurance policies using a network of agents and a group of insurance subsidiaries. The Company’s insurance subsidiary is United Property & Casualty Insurance Company. Its other subsidiaries include United Insurance Management, L.C., the managing general agent that manages substantially all aspects of United Property & Casualty Insurance Company’s business; Skyway Claims Services, LLC, which provides services to its insurance affiliate; UPC Re, which provides a portion of the reinsurance protection purchased by its insurance affiliate. The Company’s principal product is homeowners’ insurance, which it offers in Connecticut, Florida, Georgia, Hawaii, Louisiana, Massachusetts, New Jersey, North Carolina, Rhode Island, South Carolina and Texas.

Markel Corporation Company Profile

Markel Corporation is a financial holding company serving a range of markets. The Company’s principal business markets and underwrites specialty insurance products. It monitors and reports its ongoing underwriting operations in three segments: U.S. Insurance, International Insurance and Reinsurance. The Company, through its subsidiary Markel Ventures, Inc. (Markel Ventures), owns interests in various industrial and service businesses that operate outside of the specialty insurance marketplace. The U.S. Insurance segment includes all direct business and facultative placements written by its insurance subsidiaries domiciled in the United States. The International Insurance segment includes all direct business and facultative placements written by its insurance subsidiaries domiciled outside of the United States, including its syndicate at Lloyd’s of London (Lloyd’s). The Reinsurance segment includes all treaty reinsurance written across the Company.

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