Head to Head Review: Sampo (OTCMKTS:SAXPY) vs. Universal Insurance (NYSE:UVE)

Universal Insurance (NYSE:UVE) and Sampo (OTCMKTS:SAXPY) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Insider and Institutional Ownership

66.6% of Universal Insurance shares are held by institutional investors. Comparatively, 0.0% of Sampo shares are held by institutional investors. 16.6% of Universal Insurance shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Universal Insurance and Sampo”s gross 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	0.60	$182.95 million	$6.31	5.44
Sampo	$13.08 billion	8.61	$2.26 billion	$1.72	12.32

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

Dividends

Universal Insurance pays an annual dividend of $0.64 per share and has a dividend yield of 1.9%. Sampo pays an annual dividend of $0.32 per share and has a dividend yield of 1.5%. Universal Insurance pays out 10.1% of its earnings in the form of a dividend. Sampo pays out 18.6% 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. Universal Insurance is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Universal Insurance has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Sampo has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Universal Insurance and Sampo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Insurance	0	0	2	1	3.33
Sampo	0	3	0	1	2.50

Universal Insurance currently has a consensus price target of $40.00, suggesting a potential upside of 16.60%. Given Universal Insurance’s stronger consensus rating and higher probable upside, analysts plainly believe Universal Insurance is more favorable than Sampo.

Profitability

This table compares Universal Insurance and Sampo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Insurance	11.41%	37.28%	6.02%
Sampo	N/A	18.91%	5.58%

Summary

Universal Insurance beats Sampo on 12 of the 16 factors compared between the two stocks.

About Universal Insurance

Universal Insurance Holdings, Inc., together with its subsidiaries, operates as an integrated insurance holding company in the United States. It develops, markets, and underwrites insurance products for personal residential insurance, such as homeowners, renters/tenants, condo unit owners, and dwelling/fire; and offers allied lines, coverage for other structures, and personal property, liability, and personal articles coverages. The company also advises on actuarial issues, oversees distribution, administers claims payments, performs policy administration and underwriting, and assists with reinsurance negotiations; places and manages reinsurance programs for the insurance entities; and operates Clovered.com, a digital agency for various carrier partners and utilization of digital applications for adjusting claims. It offers its products through a network of independent agents, as well as direct-to-consumer online solutions, including digital insurance agency. The company was formerly known as Universal Heights, Inc. and changed its name to Universal Insurance Holdings, Inc. in January 2001. Universal Insurance Holdings, Inc. was incorporated in 1990 and is headquartered in Fort Lauderdale, Florida.

About Sampo

Sampo Oyj, together with its subsidiaries, engages in the provision of non-life insurance products and services in Finland, Sweden, Norway, Denmark, Estonia, Lithuania, Latvia, and the United Kingdom. The company operates through If, Topdanmark, Hastings, Mandatum, and Holding segments. It offers property, casualty, liability, accident, sickness, household, homeowner, motor, travel, marine, aviation, transport, forest, livestock, health, workers compensation, car, van, and bike insurance services, as well as reinsurance services. The company was founded in 1909 and is based in Helsinki, Finland.