Comparing ProSight Global (NASDAQ:PROS) & United Fire Group (NASDAQ:UFCS)


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ProSight Global (NASDAQ:PROS) and United Fire Group (NASDAQ:UFCS) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Profitability

This table compares ProSight Global and United Fire Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ProSight Global 4.12% 7.61% 1.46%
United Fire Group -12.08% -7.65% -2.17%

Volatility and Risk

ProSight Global has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, United Fire Group has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500.

Valuation & Earnings

This table compares ProSight Global and United Fire Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ProSight Global $878.06 million 0.63 $38.89 million $1.39 9.11
United Fire Group $1.20 billion 0.69 $14.82 million ($1.08) -30.54

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

Insider and Institutional Ownership

95.9% of ProSight Global shares are held by institutional investors. Comparatively, 60.0% of United Fire Group shares are held by institutional investors. 1.7% of ProSight Global shares are held by insiders. Comparatively, 6.9% of United Fire Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for ProSight Global and United Fire Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ProSight Global 0 3 1 0 2.25
United Fire Group 0 1 0 0 2.00

ProSight Global presently has a consensus price target of $14.00, indicating a potential upside of 10.58%. United Fire Group has a consensus price target of $26.00, indicating a potential downside of 21.16%. Given ProSight Global’s stronger consensus rating and higher probable upside, equities analysts plainly believe ProSight Global is more favorable than United Fire Group.

Summary

ProSight Global beats United Fire Group on 11 of the 14 factors compared between the two stocks.

About ProSight Global

ProSight Global, Inc., together with its subsidiaries, operates as an entrepreneurial specialty insurance company in the United States. It underwrites insurance coverages in the lines of commercial auto, general liability, workers' compensation, commercial multiple perils, and others. The company serves customers in construction, consumer service, marine and energy, media and entertainment, professional service, real estate, sports, and transportation industries. ProSight Global, Inc. was founded in 2009 and is headquartered in Morristown, New Jersey.

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, as well as assumed reinsurance products. Its commercial policies include fire and allied lines, other liability, automobile, workers' compensation, and surety coverage; and personal lines comprise automobile, and fire and allied lines coverage, including homeowners. The company sells its products through a network of independent agencies. United Fire Group, Inc. was founded in 1946 and is headquartered in Cedar Rapids, Iowa.

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