Willis Towers Watson Public (NASDAQ:WTW) & United Fire Group (NASDAQ:UFCS) Financial Survey

Willis Towers Watson Public (NASDAQ:WTW) and United Fire Group (NASDAQ:UFCS) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Profitability

This table compares Willis Towers Watson Public and United Fire Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Willis Towers Watson Public	15.22%	22.65%	6.00%
United Fire Group	9.06%	14.57%	3.50%

Analyst Recommendations

This is a summary of recent recommendations for Willis Towers Watson Public and United Fire Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Willis Towers Watson Public	0	6	12	1	2.74
United Fire Group	0	1	2	1	3.00

Willis Towers Watson Public presently has a consensus price target of $370.11, indicating a potential upside of 11.14%. United Fire Group has a consensus price target of $51.50, indicating a potential downside of 0.03%. Given Willis Towers Watson Public’s higher probable upside, equities research analysts plainly believe Willis Towers Watson Public is more favorable than United Fire Group.

Insider & Institutional Ownership

93.1% of Willis Towers Watson Public shares are owned by institutional investors. Comparatively, 62.7% of United Fire Group shares are owned by institutional investors. 0.4% of Willis Towers Watson Public shares are owned by insiders. Comparatively, 6.1% of United Fire Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Willis Towers Watson Public has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, United Fire Group has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Dividends

Willis Towers Watson Public pays an annual dividend of $3.84 per share and has a dividend yield of 1.2%. United Fire Group pays an annual dividend of $0.80 per share and has a dividend yield of 1.6%. Willis Towers Watson Public pays out 23.4% 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. Willis Towers Watson Public has increased its dividend for 8 consecutive years. United Fire Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Willis Towers Watson Public 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
Willis Towers Watson Public	$10.27 billion	2.99	$1.60 billion	$16.39	20.32
United Fire Group	$1.51 billion	0.88	$118.19 million	$5.23	9.85

Willis Towers Watson Public has higher revenue and earnings than United Fire Group. United Fire Group is trading at a lower price-to-earnings ratio than Willis Towers Watson Public, indicating that it is currently the more affordable of the two stocks.

Summary

Willis Towers Watson Public beats United Fire Group on 12 of the 17 factors compared between the two stocks.

About Willis Towers Watson Public

Willis Towers Watson Public Limited Company, which operates under the WTW name, is a global advisory, broking and solutions firm. It helps organizations manage risk, improve employee benefits and support workforce and business performance. WTW’s services include insurance and risk brokerage, risk management advice, retirement and investment consulting, health and benefits solutions, and guidance on talent, rewards and organizational strategy. It serves businesses, public-sector organizations and individuals across a range of industries.

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.