Financial Survey: Oxbridge Re (NASDAQ:OXBR) vs. Heritage Insurance (NYSE:HRTG)

Heritage Insurance (NYSE:HRTG) and Oxbridge Re (NASDAQ:OXBR) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Valuation and Earnings

This table compares Heritage Insurance and Oxbridge Re”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heritage Insurance	$816.99 million	0.71	$45.31 million	$2.01	6.74
Oxbridge Re	-$1.78 million	-8.21	-$9.91 million	($0.84)	-2.58

Heritage Insurance has higher revenue and earnings than Oxbridge Re. Oxbridge Re is trading at a lower price-to-earnings ratio than Heritage Insurance, indicating that it is currently the more affordable of the two stocks.

Dividends

Heritage Insurance pays an annual dividend of $0.24 per share and has a dividend yield of 1.8%. Oxbridge Re pays an annual dividend of $0.48 per share and has a dividend yield of 22.1%. Heritage Insurance pays out 11.9% of its earnings in the form of a dividend. Oxbridge Re pays out -57.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Oxbridge Re is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Heritage Insurance has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Oxbridge Re has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500.

Insider and Institutional Ownership

59.0% of Heritage Insurance shares are held by institutional investors. Comparatively, 5.6% of Oxbridge Re shares are held by institutional investors. 14.0% of Heritage Insurance shares are held by insiders. Comparatively, 19.5% of Oxbridge Re shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Heritage Insurance and Oxbridge Re’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heritage Insurance	9.10%	29.17%	3.12%
Oxbridge Re	N/A	-114.38%	-64.42%

Analyst Ratings

This is a breakdown of recent recommendations for Heritage Insurance and Oxbridge Re, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heritage Insurance	0	1	2	0	2.67
Oxbridge Re	0	0	0	0	0.00

Heritage Insurance currently has a consensus target price of $12.50, indicating a potential downside of 7.78%. Given Heritage Insurance’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Heritage Insurance is more favorable than Oxbridge Re.

Summary

Heritage Insurance beats Oxbridge Re on 12 of the 16 factors compared between the two stocks.

About Heritage Insurance

Heritage Insurance Holdings, Inc., through its subsidiaries, provides personal and commercial residential insurance products. The company offers personal residential insurance in Alabama, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Virginia; commercial residential insurance for properties in Florida, New Jersey, and New York; and licensed in the state of Pennsylvania, as well as personal residential and wind-only property insurance. It also provides restoration, emergency, and recovery services; property management, and reinsurance services; homeowners insurance products, including single-family, homeowners or duplex, and condominium owners; and dwelling fire insurance policies. In addition, the company provides personal line policies through a network of retail independent agents, wholesale agents, and a partnership with a direct agency, as well as distribute indirectly to retail locations through wholesale agency relationships. Further, it offers personal and commercial insurance policies through a network of independent agencies. The company was founded in 2012 and is headquartered in Tampa, Florida.

About Oxbridge Re

Oxbridge Re Holdings Limited, through its subsidiaries, provides specialty property and casualty reinsurance solutions. The company underwrites collateralized reinsurance contracts primarily for property and casualty insurance companies in the Gulf Coast region of the United States. It also issues reinsurance contracts through digital securities by blockchain technology. In addition, the company offers fractional aircraft ownership, jet card, aircraft brokerage, and charter service through its fleet of private aircraft. It distributes its products and solutions through reinsurance brokers. Oxbridge Re Holdings Limited was incorporated in 2013 and is headquartered in George Town, the Cayman Islands.