Oxbridge Re (NASDAQ:OXBR) versus United Fire Group (NASDAQ:UFCS) Financial Analysis

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

Volatility & Risk

United Fire Group has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, Oxbridge Re has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Institutional & Insider Ownership

62.7% of United Fire Group shares are owned by institutional investors. Comparatively, 5.6% of Oxbridge Re shares are owned by institutional investors. 6.0% of United Fire Group shares are owned by company insiders. Comparatively, 17.7% of Oxbridge Re shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
United Fire Group	-1.50%	-2.63%	-0.59%
Oxbridge Re	N/A	-133.14%	-96.54%

Analyst Recommendations

This is a breakdown of recent recommendations for United Fire Group and Oxbridge Re, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Fire Group	1	0	0	0	1.00
Oxbridge Re	0	0	0	0	N/A

United Fire Group presently has a consensus price target of $21.00, suggesting a potential downside of 0.80%. Given United Fire Group’s higher possible upside, equities analysts clearly believe United Fire Group is more favorable than Oxbridge Re.

Valuation & Earnings

This table compares United Fire Group and Oxbridge Re’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Fire Group	$1.10 billion	0.49	-$29.70 million	($0.69)	-30.68
Oxbridge Re	$850,000.00	16.62	-$9.91 million	($1.86)	-1.26

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

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

About Oxbridge Re

Oxbridge Re Holdings Limited, through its subsidiaries, provides specialty property and casualty reinsurance solutions. The company underwrites collateralized reinsurance contracts primarily for property and casualty insurance companies in the Gulf Coast region of the United States. It also issues reinsurance contracts through digital securities by blockchain technology. In addition, the company offers fractional aircraft ownership, jet card, aircraft brokerage, and charter service through its fleet of private aircraft. It distributes its products and solutions through reinsurance brokers. Oxbridge Re Holdings Limited was incorporated in 2013 and is headquartered in George Town, the Cayman Islands.