Global Indemnity Group (NASDAQ:GBLI – Get Free Report) and United Fire Group (NASDAQ:UFCS – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.
Earnings & Valuation
This table compares Global Indemnity Group and United Fire Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Global Indemnity Group | $450.10 million | 0.71 | $25.33 million | $2.10 | 10.45 |
| United Fire Group | $1.39 billion | 0.96 | $118.19 million | $5.23 | 9.85 |
United Fire Group has higher revenue and earnings than Global Indemnity Group. United Fire Group is trading at a lower price-to-earnings ratio than Global Indemnity Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Global Indemnity Group and United Fire Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Global Indemnity Group | 6.74% | 4.69% | 1.94% |
| United Fire Group | 9.06% | 14.57% | 3.50% |
Analyst Ratings
This is a summary of recent recommendations for Global Indemnity Group and United Fire Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Global Indemnity Group | 0 | 1 | 0 | 0 | 2.00 |
| United Fire Group | 0 | 1 | 2 | 1 | 3.00 |
United Fire Group has a consensus target price of $51.50, suggesting a potential downside of 0.02%. Given United Fire Group’s stronger consensus rating and higher possible upside, analysts clearly believe United Fire Group is more favorable than Global Indemnity Group.
Insider and Institutional Ownership
37.4% of Global Indemnity Group shares are owned by institutional investors. Comparatively, 62.7% of United Fire Group shares are owned by institutional investors. 47.1% of Global Indemnity Group shares are owned by company insiders. Comparatively, 6.1% of United Fire Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Dividends
Global Indemnity Group pays an annual dividend of $1.40 per share and has a dividend yield of 6.4%. United Fire Group pays an annual dividend of $0.80 per share and has a dividend yield of 1.6%. Global Indemnity Group pays out 66.7% of its earnings in the form of a dividend. United Fire Group pays out 15.3% 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. Global Indemnity Group has raised its dividend for 1 consecutive years. Global Indemnity Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
Global Indemnity Group has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, United Fire Group has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.
Summary
United Fire Group beats Global Indemnity Group on 14 of the 18 factors compared between the two stocks.
About Global Indemnity Group
Global Indemnity Group, LLC (NASDAQ: GBLI) is an insurance holding company that provides specialty property and casualty insurance and reinsurance products. Its business is focused on risks that may require specialized underwriting expertise, including commercial, professional and personal insurance exposures. Through its operating subsidiaries, the company offers products in areas such as excess and surplus lines, commercial property and casualty coverage, specialty personal lines, and other niche insurance markets.
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.
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