Universal Insurance (NYSE:UVE – Get Rating) and Deep Yellow (OTCMKTS:DYLLF – Get Rating) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.
Earnings & Valuation
This table compares Universal Insurance and Deep Yellow’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Universal Insurance | $1.22 billion | 0.40 | -$22.26 million | ($0.51) | -31.14 |
| Deep Yellow | N/A | N/A | N/A | N/A | N/A |
Deep Yellow has lower revenue, but higher earnings than Universal Insurance.
Volatility and Risk
Universal Insurance has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Deep Yellow has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.
Insider & Institutional Ownership
66.9% of Universal Insurance shares are held by institutional investors. 17.7% of Universal Insurance shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Universal Insurance and Deep Yellow’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Universal Insurance | -1.25% | -2.69% | -0.30% |
| Deep Yellow | N/A | N/A | N/A |
Analyst Ratings
This is a breakdown of current recommendations for Universal Insurance and Deep Yellow, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Universal Insurance | 0 | 0 | 1 | 0 | 3.00 |
| Deep Yellow | 0 | 0 | 0 | 0 | N/A |
Universal Insurance presently has a consensus target price of $23.00, indicating a potential upside of 44.84%. Given Universal Insurance’s higher probable upside, equities research analysts plainly believe Universal Insurance is more favorable than Deep Yellow.
Summary
Universal Insurance beats Deep Yellow on 5 of the 9 factors compared between the two stocks.
About Universal Insurance
Universal Insurance Holdings, Inc. engages in offering property and casualty insurance and value-added insurance services. It develops, markets and underwrites insurance products for consumers in the personal residential homeowner’s lines of business and perform substantially all other insurance-related services for primary insurance entities, including risk management, claims management, and distribution. The company was founded by Bradley I. Meier on November 13, 1990 and is headquartered in Fort Lauderdale, FL.
About Deep Yellow
Deep Yellow Ltd. engages in the acquisition, exploration, evaluation and development of uranium properties. It focuses on the exploration and pre-development activities in Namibia and Africa. The firm holds interest in The Reptile, The Yellow Dune Joint Venture, and The Nova Joint Venture projects. The company was founded on March 26, 1985 and is headquartered in Subiaco, Australia.
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