Universal Insurance (NYSE:UVE – Get Free Report) and Oxbridge Re (NASDAQ:OXBR – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.
Valuation and Earnings
This table compares Universal Insurance and Oxbridge Re”s revenue, earnings per share (EPS) 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 & Institutional Ownership
66.6% of Universal Insurance shares are held by institutional investors. Comparatively, 5.6% of Oxbridge Re shares are held by institutional investors. 15.0% of Universal Insurance shares are held by company insiders. Comparatively, 16.3% of Oxbridge Re shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
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% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Universal Insurance and Oxbridge Re, as provided by MarketBeat.com.
| 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 presently has a consensus target price of $51.00, suggesting a potential upside of 4.96%. Oxbridge Re has a consensus target price of $3.00, suggesting a potential upside of 213.48%. Given Oxbridge Re’s higher probable upside, analysts clearly believe Oxbridge Re is more favorable than Universal Insurance.
Risk & Volatility
Universal Insurance has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, Oxbridge Re has a beta of 2.05, indicating that its share price is 105% more volatile than the S&P 500.
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.
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