Unum Group (NYSE:UNM – Get Free Report) and United Fire Group (NASDAQ:UFCS – Get Free Report) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.
Insider and Institutional Ownership
86.6% of Unum Group shares are owned by institutional investors. Comparatively, 62.7% of United Fire Group shares are owned by institutional investors. 1.0% of Unum Group shares are owned by company insiders. Comparatively, 6.1% of United Fire Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Unum Group and United Fire Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Unum Group | 5.26% | 12.60% | 2.18% |
| United Fire Group | 9.57% | 15.19% | 3.69% |
Dividends
Analyst Recommendations
This is a breakdown of recent ratings for Unum Group and United Fire Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Unum Group | 0 | 6 | 8 | 0 | 2.57 |
| United Fire Group | 0 | 1 | 2 | 1 | 3.00 |
Unum Group presently has a consensus target price of $99.42, indicating a potential upside of 5.53%. United Fire Group has a consensus target price of $52.50, indicating a potential downside of 5.20%. Given Unum Group’s higher possible upside, research analysts plainly believe Unum Group is more favorable than United Fire Group.
Risk and Volatility
Unum Group has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500. Comparatively, United Fire Group has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.
Earnings & Valuation
This table compares Unum Group 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 | |
| Unum Group | $13.08 billion | 1.14 | $738.50 million | $4.29 | 21.96 |
| United Fire Group | $1.39 billion | 1.03 | $118.19 million | $5.38 | 10.29 |
Unum Group has higher revenue and earnings than United Fire Group. United Fire Group is trading at a lower price-to-earnings ratio than Unum Group, indicating that it is currently the more affordable of the two stocks.
About Unum Group
Unum Group, together with its subsidiaries, provides financial protection benefit solutions primarily in the United States, the United Kingdom, Poland, and internationally. It operates through Unum US, Unum International, Colonial Life, and Closed Block segment. The company offers group long-term and short-term disability, group life, and accidental death and dismemberment products; supplemental and voluntary products, such as individual disability, voluntary benefits, and dental and vision products; and accident, sickness, disability, life, and cancer and critical illness products. It also provides group pension, individual life and corporate-owned life insurance, reinsurance pools and management operations, and other miscellaneous products. The company sells its products primarily to employers for the benefit of employees. It sells its products through field sales personnel, independent brokers, consultants, and independent contractor agent sales force and brokers. Unum Group was founded in 1848 and is based in Chattanooga, Tennessee.
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.
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