UVE vs HCI

For growth investors, HCI Group, Inc.

(HCI) is the stronger pick with 20. 2% revenue growth year-over-year, versus 4. 9% for Universal Insurance Holdings, Inc. (UVE). HCI Group, Inc. (HCI) offers the better valuation at 6. 2x trailing P/E (9. 2x forward), making it the more compelling value choice. Analysts rate Universal Insurance Holdings, Inc. (UVE) a "Buy" — based on 4 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, HCI Group, Inc.

(HCI) is the cheapest at 6. 2x versus Universal Insurance Holdings, Inc. at 6. 4x. On forward P/E, HCI Group, Inc. is actually cheaper at 9. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Universal Insurance Holdings, Inc. wins at 0. 15x versus HCI Group, Inc. 's 0. 19x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Universal Insurance Holdings, Inc.

(UVE) delivered a total return of +203. 4%, compared to +110. 5% for HCI Group, Inc. (HCI). Over 10 years, the gap is even starker: HCI returned +436. 8% versus UVE's +165. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), HCI Group, Inc.

(HCI) is the lower-risk stock at 0. 39β versus Universal Insurance Holdings, Inc. 's 0. 49β — meaning UVE is approximately 26% more volatile than HCI relative to the S&P 500. On balance sheet safety, HCI Group, Inc. (HCI) carries a lower debt/equity ratio of 6% versus 18% for Universal Insurance Holdings, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), HCI Group, Inc.

(HCI) is pulling ahead at 20. 2% versus 4. 9% for Universal Insurance Holdings, Inc. (UVE). On earnings-per-share growth, the picture is similar: Universal Insurance Holdings, Inc. grew EPS 214. 4% year-over-year, compared to 179. 8% for HCI Group, Inc.. Over a 3-year CAGR, HCI leads at 22. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

HCI Group, Inc.

(HCI) is the more profitable company, earning 33. 2% net margin versus 11. 5% for Universal Insurance Holdings, Inc. — meaning it keeps 33. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HCI leads at 47. 7% versus 15. 2% for UVE. At the gross margin level — before operating expenses — HCI leads at 73. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Universal Insurance Holdings, Inc. (UVE) is the more undervalued stock at a PEG of 0. 15x versus HCI Group, Inc. 's 0. 19x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, HCI Group, Inc. (HCI) trades at 9. 2x forward P/E versus 9. 3x for Universal Insurance Holdings, Inc. — 0. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for UVE: -0. 8% to $40. 00.

All stocks in this comparison pay dividends.

Universal Insurance Holdings, Inc. (UVE) offers the highest yield at 1. 9%, versus 1. 0% for HCI Group, Inc. (HCI).

For long-horizon retirement investors, HCI Group, Inc.

(HCI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 39), 1. 0% yield, +436. 8% 10Y return). Both have compounded well over 10 years (HCI: +436. 8%, UVE: +165. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: UVE is a small-cap deep-value stock; HCI is a small-cap high-growth stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.