Critical Review: The Baldwin Insurance Group (NASDAQ:BWIN) vs. UMC (OTCMKTS:UMCN)

UMC (OTCMKTS:UMCN) and The Baldwin Insurance Group (NASDAQ:BWIN) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for UMC and The Baldwin Insurance Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UMC	0	0	0	0	N/A
The Baldwin Insurance Group	0	0	1	1	3.50

The Baldwin Insurance Group has a consensus price target of $42.50, suggesting a potential upside of 18.72%. Given The Baldwin Insurance Group’s higher possible upside, analysts clearly believe The Baldwin Insurance Group is more favorable than UMC.

Volatility and Risk

UMC has a beta of 21.98, indicating that its share price is 2,098% more volatile than the S&P 500. Comparatively, The Baldwin Insurance Group has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500.

Valuation and Earnings

This table compares UMC and The Baldwin Insurance Group’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UMC	N/A	N/A	N/A	N/A	N/A
The Baldwin Insurance Group	$1.22 billion	3.45	-$90.14 million	($0.92)	-38.91

UMC has higher earnings, but lower revenue than The Baldwin Insurance Group.

Profitability

This table compares UMC and The Baldwin Insurance Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UMC	N/A	N/A	N/A
The Baldwin Insurance Group	-4.29%	9.21%	2.82%

Institutional and Insider Ownership

70.4% of The Baldwin Insurance Group shares are owned by institutional investors. 16.8% of UMC shares are owned by insiders. Comparatively, 20.1% of The Baldwin Insurance Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

The Baldwin Insurance Group beats UMC on 8 of the 10 factors compared between the two stocks.

About UMC

UMC, Inc. provides medical insurance claims coding and processing, electronic medical records storage, chargemaster review, pricing comparison, and accounts receivable management services to healthcare providers. Its customers primarily include hospitals, medical clinics, and physician practitioners in the United States. The company was formerly known as United Medicorp, Inc. and changed its name to UMC, Inc. in May 2007. UMC, Inc. was incorporated in 1989 and is based in Pampa, Texas.

About The Baldwin Insurance Group

The Baldwin Insurance Group, Inc. operates as an independent insurance distribution firm that delivers insurance and risk management solutions in the United States. It operates through three segments: Insurance Advisory Solutions; Underwriting, Capacity & Technology Solutions; and Mainstreet Insurance Solutions. The Insurance Advisory Solutions segment provides commercial risk management, employee benefits, and private risk management solutions for businesses and high-net-worth individuals, as well as their families. The Underwriting, Capacity & Technology Solutions segment offers Future platform, that manufactures technology-enabled insurance products suite comprises personal, commercial, and specialty lines; specialty wholesale broker business that delivers professionals, individuals, and niche industry businesses; and reinsurance brokerage services. The Mainstreet Insurance Solutions segment provides personal insurance, commercial insurance, and life and health solutions to individuals and businesses in communities. The company was formerly known as BRP Group, Inc. and changed its name to The Baldwin Insurance Group, Inc. in May 2024. The Baldwin Insurance Group, Inc. was founded in 2011 and is headquartered in Tampa, Florida.