Head to Head Review: Progressive (NYSE:PGR) vs. United Insurance (NYSE:UIHC) – Mitchell Messenger

Progressive (NYSE:PGR) and United Insurance (NASDAQ:UIHC) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Volatility & Risk

Progressive has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, United Insurance has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

78.2% of Progressive shares are held by institutional investors. Comparatively, 36.6% of United Insurance shares are held by institutional investors. 0.4% of Progressive shares are held by insiders. Comparatively, 52.5% of United Insurance 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.

Profitability

This table compares Progressive and United Insurances net margins, return on equity and return on assets.

Earnings and Valuation

This table compares Progressive and United Insurances top-line revenue, earnings per share and valuation.

Progressive has higher revenue and earnings than United Insurance. Progressive is trading at a lower price-to-earnings ratio than United Insurance, indicating that it is currently the more affordable of the two stocks.

Dividends

Progressive pays an annual dividend of $0.40 per share and has a dividend yield of 0.6%. United Insurance pays an annual dividend of $0.24 per share and has a dividend yield of 1.9%. Progressive pays out 9.0% of its earnings in the form of a dividend. United Insurance pays out 63.2% 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Progressive and United Insurance, as reported by MarketBeat.com.

Progressive currently has a consensus price target of $82.36, suggesting a potential upside of 16.28%. United Insurance has a consensus price target of $14.00, suggesting a potential upside of 11.64%. Given Progressives higher probable upside, equities analysts plainly believe Progressive is more favorable than United Insurance.

Summary

Progressive beats United Insurance on 11 of the 16 factors compared between the two stocks.

About Progressive

The Progressive Corporation, through its subsidiaries, provides personal and commercial auto insurance, residential property insurance, and other specialty property-casualty insurance and related services primarily in the United States. Its Personal Lines segment writes insurance for personal autos, and recreational and other vehicles. This segment's products include personal auto insurance; and special lines products, including insurance for motorcycles, ATVs, RVs, watercrafts, and snowmobiles. The company's Commercial Lines segment provides primary liability, physical damage, and other auto-related insurance for autos, vans, pick-up trucks, and dump trucks used by small businesses; tractors, trailers, and straight trucks primarily used by regional general freight and expeditor-type businesses, and non-fleet long-haul operators; dump trucks, log trucks, and garbage trucks used by dirt, sand and gravel, logging, and coal-type businesses; tow trucks and wreckers used in towing services and gas/service station businesses; and non-fleet taxis, black-car services, and airport taxis. Its Property segment provides residential property insurance for homes, condos, manufactured homes, and renters, as well as offers personal umbrella insurance, and primary and excess flood insurance. The company also offers policy issuance and claims adjusting services; home, condominium, renters, and other insurance; and general liability and business owner's policies, and workers' compensation insurance. In addition, it offers reinsurance services. The Progressive Corporation sells its products and services through independent insurance agencies, as well as directly on Internet, and mobile devices, and over the phone. The company was founded in 1937 and is headquartered in Mayfield Village, Ohio.

About United Insurance

United Insurance Holdings Corp. operates as a property and casualty insurance holding company that sources, writes, and services residential personal and commercial property, and casualty insurance policies in the United States. The company offers structure, content, and liability coverage for standard single-family homeowners, renters, and condominium unit owners, as well as dwelling fire policies. It also provides commercial multi-peril property insurance for residential condominium associations, as well as loss or damage to buildings, inventory, or equipment caused by covered cause of loss, such as fire, wind, hail, water, theft, and vandalism. In addition, the company offers flood, equipment breakdown, and identity theft policies. It markets and distributes its products through a network of independent agencies in Connecticut, Florida, Georgia, Hawaii, Louisiana, Massachusetts, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Texas. United Insurance Holdings Corp. was founded in 1999 and is headquartered in St. Petersburg, Florida.

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Head to Head Review: Progressive (NYSE:PGR) vs. United Insurance (NYSE:UIHC) - Mitchell Messenger