Universal Insurance vs Universal Which Should You Buy?

Universal insurance and universal stocks are two distinct financial products that offer different benefits and risks to investors. Universal insurance provides protection against unexpected events such as accidents, illness, or death, offering financial security for policyholders. On the other hand, universal stocks are investments in companies that have the potential to grow and generate returns for shareholders. While universal insurance focuses on risk management, universal stocks focus on potential financial growth. Understanding the differences between these two options can help investors make informed decisions based on their financial goals and risk tolerance.

Universal Insurance or Universal?

When comparing Universal Insurance and Universal, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Universal Insurance and Universal.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Universal Insurance has a dividend yield of 3.64%, while Universal has a dividend yield of 5.71%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Universal Insurance reports a 5-year dividend growth of 1.07% year and a payout ratio of 30.72%. On the other hand, Universal reports a 5-year dividend growth of 4.11% year and a payout ratio of 64.59%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Universal Insurance P/E ratio at 8.22 and Universal's P/E ratio at 11.52. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Universal Insurance P/B ratio is 1.50 while Universal's P/B ratio is 0.99.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Universal Insurance has seen a 5-year revenue growth of 0.97%, while Universal's is 0.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Universal Insurance's ROE at 19.45% and Universal's ROE at 8.62%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $21.09 for Universal Insurance and $56.12 for Universal. Over the past year, Universal Insurance's prices ranged from $15.63 to $23.39, with a yearly change of 49.65%. Universal's prices fluctuated between $45.19 and $67.80, with a yearly change of 50.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.