EMC Insurance Group (EMCI) vs. Unico American (UNAM) Financial Review

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EMC Insurance Group (NASDAQ: UNAM) and Unico American (NASDAQ:UNAM) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Profitability

This table compares EMC Insurance Group and Unico American’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EMC Insurance Group 3.23% 3.30% 1.15%
Unico American -24.02% -14.33% -6.52%

Dividends

EMC Insurance Group pays an annual dividend of $0.88 per share and has a dividend yield of 3.4%. Unico American does not pay a dividend. EMC Insurance Group pays out 72.1% of its earnings in the form of a dividend. EMC Insurance Group has increased its dividend for 8 consecutive years.

Analyst Recommendations

This is a summary of current recommendations and price targets for EMC Insurance Group and Unico American, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EMC Insurance Group 0 1 1 0 2.50
Unico American 0 0 0 0 N/A

EMC Insurance Group currently has a consensus price target of $30.50, indicating a potential upside of 18.40%. Given EMC Insurance Group’s higher probable upside, analysts plainly believe EMC Insurance Group is more favorable than Unico American.

Earnings and Valuation

This table compares EMC Insurance Group and Unico American’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EMC Insurance Group $652.29 million 0.85 $39.23 million $1.22 21.11
Unico American $36.79 million 1.03 -$8.72 million N/A N/A

EMC Insurance Group has higher revenue and earnings than Unico American.

Insider & Institutional Ownership

28.6% of EMC Insurance Group shares are held by institutional investors. Comparatively, 23.9% of Unico American shares are held by institutional investors. 2.9% of EMC Insurance Group shares are held by company insiders. Comparatively, 51.3% of Unico American shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

EMC Insurance Group has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Unico American has a beta of -0.47, indicating that its stock price is 147% less volatile than the S&P 500.

Summary

EMC Insurance Group beats Unico American on 11 of the 14 factors compared between the two stocks.

About EMC Insurance Group

EMC Insurance Group Inc., an insurance holding company, provides property and casualty insurance, and reinsurance products in the United States. It operates through two segments, Property and Casualty Insurance, and Reinsurance. The Property and Casualty Insurance segment underwrites commercial and personal lines of insurance products. Its commercial lines of insurance products comprise automobile, property, workers' compensation, and liability, as well as other products that provide protection with respect to burglary and theft loss, aircraft, marine, and other types of losses; and personal lines of insurance products include automobile, homeowners, and umbrella policies. The Reinsurance segment provides reinsurance for other insurers and reinsurers. EMC Insurance Group Inc. offers its products to small and medium-sized businesses, institutions, and individual consumers through independent insurance agents. The company was founded in 1974 and is based in Des Moines, Iowa. EMC Insurance Group Inc. is a subsidiary of Employers Mutual Casualty Company.

About Unico American

Unico American Corporation, through its subsidiaries, underwrites property and casualty insurance in Arizona, California, Nevada, Oregon, and Washington. The company provides property, casualty, health, and life insurance products, as well as insurance premium financing and membership association services. Its commercial property coverage insures against loss or damage to buildings, inventory, and equipment from natural disasters, including hurricanes, windstorms, hail, water, explosions, and severe winter weather, as well as other events, such as theft and vandalism, fires, storms, and financial loss due to business interruption resulting from covered property damage. The company also provides commercial liability coverage that insures against third party liability from accidents occurring on the insured's premises or arising out of its operation; and writes separate policies to insure commercial property and commercial liability risks on a mono-line basis. In addition, it sells and services daily automobile rental policies; and provides group dental and vision insurance policies, as well as health and life insurance for individuals and groups. The company markets its insurance products primarily through a network of brokers and retail agents. Unico American Corporation was founded in 1969 and is based in Calabasas, California.

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