Maiden Holdings (NASDAQ: MHLD) and Third Point Reinsurance (NYSE:TPRE) are both small-cap financials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.
Maiden Holdings pays an annual dividend of $0.60 per share and has a dividend yield of 8.6%. Third Point Reinsurance does not pay a dividend. Maiden Holdings pays out -120.0% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Maiden Holdings and Third Point Reinsurance’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Maiden Holdings||$2.91 billion||0.21||$22.34 million||($0.50)||-14.00|
|Third Point Reinsurance||$924.00 million||1.62||$198.30 million||$1.92||7.53|
Third Point Reinsurance has higher revenue, but lower earnings than Maiden Holdings. Maiden Holdings is trading at a lower price-to-earnings ratio than Third Point Reinsurance, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
66.5% of Maiden Holdings shares are held by institutional investors. Comparatively, 68.0% of Third Point Reinsurance shares are held by institutional investors. 10.0% of Maiden Holdings shares are held by insiders. Comparatively, 36.9% of Third Point Reinsurance shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Maiden Holdings has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Third Point Reinsurance has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.
This table compares Maiden Holdings and Third Point Reinsurance’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Third Point Reinsurance||22.18%||13.56%||5.04%|
This is a breakdown of recent ratings for Maiden Holdings and Third Point Reinsurance, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Third Point Reinsurance||0||2||1||0||2.33|
Maiden Holdings currently has a consensus target price of $11.50, indicating a potential upside of 64.29%. Third Point Reinsurance has a consensus target price of $15.50, indicating a potential upside of 7.27%. Given Maiden Holdings’ stronger consensus rating and higher probable upside, analysts plainly believe Maiden Holdings is more favorable than Third Point Reinsurance.
Third Point Reinsurance beats Maiden Holdings on 9 of the 14 factors compared between the two stocks.
About Maiden Holdings
Maiden Holdings, Ltd. (Maiden) is a holding company. The Company focuses on serving the needs of regional and specialty insurers in the United States, Europe and select other global markets by providing reinsurance solutions designed to support their capital needs. It operates through two segments: Diversified Reinsurance and AmTrust Reinsurance. The Diversified Reinsurance segment consists of a portfolio of property and casualty reinsurance business focusing on regional and specialty property, and casualty insurance companies located, primarily in the United States and Europe. AmTrust is a multinational specialty property and casualty insurance holding company with operations in the United States, Europe and Bermuda. The Company provides reinsurance through its subsidiaries, Maiden Reinsurance Ltd. and Maiden Reinsurance North America, Inc. Internationally, the Company provides insurance sales and distribution services through Maiden Global Holdings, Ltd. and its subsidiaries.
About Third Point Reinsurance
Third Point Reinsurance Ltd. is a holding company. Through the Company’s reinsurance subsidiaries, it provides property and casualty reinsurance coverage to insurance and reinsurance companies. The Company’s segments include Property and Casualty Reinsurance, and Corporate. The Company’s investable assets are managed by its investment manager, Third Point LLC. The Company also writes reinsurance contracts that provide protection against adverse development on loss reserves. Through Third Point LLC, the Company makes investments globally in all sectors, and in equity, credit, commodity, currency, options and other instruments. The Company also acts as the underwriter for the majority of the premium that it underwrites. The Company writes reinsurance contracts covering product lines, such as property, workers’ compensation, auto, general liability, professional liability, credit and financial lines, and multi-line.
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