United Fire Group (NASDAQ:UFCS – Get Free Report) and First Acceptance (OTCMKTS:FACO – 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, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.
Volatility & Risk
United Fire Group has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, First Acceptance has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for United Fire Group and First Acceptance, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United Fire Group | 0 | 1 | 0 | 0 | 2.00 |
| First Acceptance | 0 | 0 | 0 | 0 | 0.00 |
Insider & Institutional Ownership
62.7% of United Fire Group shares are held by institutional investors. Comparatively, 0.1% of First Acceptance shares are held by institutional investors. 6.0% of United Fire Group shares are held by company insiders. Comparatively, 9.5% of First Acceptance shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares United Fire Group and First Acceptance”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United Fire Group | $1.10 billion | 0.64 | -$29.70 million | $1.94 | 14.16 |
| First Acceptance | $560.58 million | 0.22 | $73.91 million | $2.09 | 1.56 |
First Acceptance has lower revenue, but higher earnings than United Fire Group. First Acceptance is trading at a lower price-to-earnings ratio than United Fire Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares United Fire Group and First Acceptance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United Fire Group | 4.15% | 6.75% | 1.51% |
| First Acceptance | 12.41% | 53.03% | 13.17% |
Summary
United Fire Group beats First Acceptance on 7 of the 13 factors compared between the two stocks.
About United Fire Group
United Fire Group, Inc., together with its subsidiaries, provides property and casualty insurance for individuals and businesses in the United States. The company offers commercial and personal lines of property and casualty insurance; and reinsurance coverage for property and casualty insurance. Its commercial lines include fire and allied lines, other liability, automobile, workers’ compensation, fidelity and surety coverage, and other insurance products; and personal lines comprise automobile, and fire and allied lines coverage, including homeowners, as well as provides assumed reinsurance products. The company sells its products through a network of independent agencies. United Fire Group, Inc. was incorporated in 1946 and is headquartered in Cedar Rapids, Iowa.
About First Acceptance
First Acceptance Corporation, together with its subsidiaries, operates as a retailer, servicer, and underwriter of non-standard personal automobile insurance and related products in the United States. It issues non-standard automobile insurance policies to individuals based on their inability or unwillingness to obtain insurance coverage from standard carriers due to various factors, including their payment preference, failure to maintain continuous insurance coverage, or driving record. The company also underwrites auto and motorcycle insurance products; and renters, homeowners, commercial, pet, life, travel, outdoor vehicle, and hospital indemnity insurance products. In addition, it provides TeleMed, a subscription service that offers access to doctor for consulting, diagnosing, and prescribing medication for non-emergency illness. The company primarily distributes its products through its retail locations, as well as through call center and internet. As of December 31, 2021, it leased and operated 338 retail locations, and a call center. First Acceptance Corporation was founded in 1969 and is headquartered in Nashville, Tennessee.
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