Analyzing SiriusPoint (NYSE:SPNT) and Investors Title (NASDAQ:ITIC)

Investors Title (NASDAQ:ITIC) and SiriusPoint (NYSE:SPNT) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Profitability

This table compares Investors Title and SiriusPoint’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Investors Title	13.80%	14.62%	11.02%
SiriusPoint	15.56%	15.65%	2.76%

Insider & Institutional Ownership

41.4% of Investors Title shares are owned by institutional investors. Comparatively, 52.8% of SiriusPoint shares are owned by institutional investors. 26.0% of Investors Title shares are owned by insiders. Comparatively, 12.2% of SiriusPoint shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Investors Title and SiriusPoint”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Investors Title	$272.76 million	2.03	$35.18 million	$21.35	13.74
SiriusPoint	$3.21 billion	0.89	$459.60 million	$4.10	5.98

SiriusPoint has higher revenue and earnings than Investors Title. SiriusPoint is trading at a lower price-to-earnings ratio than Investors Title, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Investors Title has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, SiriusPoint has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Investors Title and SiriusPoint, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Investors Title	0	0	1	0	3.00
SiriusPoint	0	3	3	0	2.50

SiriusPoint has a consensus target price of $30.50, indicating a potential upside of 24.36%. Given SiriusPoint’s higher probable upside, analysts clearly believe SiriusPoint is more favorable than Investors Title.

About Investors Title

Investors Title Company engages in the issuance of residential and commercial title insurance for residential, institutional, commercial, and industrial properties. The company underwrites land title insurance for owners and mortgagees as a primary insurer; and assumes the reinsurance of title insurance risks from other title insurance companies. It offers services in connection with tax-deferred exchanges of like-kind property; acts as a qualified intermediary in tax-deferred exchanges of property; coordinates the exchange aspects of the real estate transaction, such as drafting standard exchange documents, holding the exchange funds between the sale of the old property and the purchase of the new property, and accepting the formal identification of the replacement property. In addition, it serves as an exchange accommodation titleholder for accomplishing reverse exchanges when the taxpayers decide to acquire replacement property before selling the relinquished property. Further, the company offers investment management and trust services to individuals, companies, banks, and trusts; and consulting and management services to clients to start and operate a title insurance agency. It issues title insurance policies directly and through a network of agents in 22 states and the District of Columbia, primarily in the eastern half of the United States. Investors Title Company was founded in 1972 and is headquartered in Chapel Hill, North Carolina.

About SiriusPoint

SiriusPoint Ltd. provides multi-line insurance and reinsurance products and services worldwide. The company operates through two segments, Reinsurance, and Insurance & Services. The Reinsurance segment provides aviation and space, accident and health, casualty, credit, marine and energy, property to insurance and reinsurance companies, government entities, and other risk bearing vehicles. This segment offers medical insurance products, trip cancellation programs, medical management services, and 24/7 emergency medical and travel assistance services. The Insurance & Services segment provides accident and health, marine and energy, property and casualty, mortgage, environmental, workers' compensation, commercial auto lines, professional liability, and other lines of business. The company was formerly known as Third Point Reinsurance Ltd. and changed its name to SiriusPoint Ltd. in February 2021. SiriusPoint Ltd. was incorporated in 2011 and is headquartered in Pembroke, Bermuda.