Head-To-Head Analysis: SiriusPoint (NYSE:SPNT) & Reinsurance Group of America (NYSE:RGA)

SiriusPoint (NYSE:SPNT) and Reinsurance Group of America (NYSE:RGA) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and target prices for SiriusPoint and Reinsurance Group of America, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SiriusPoint	0	3	2	0	2.40
Reinsurance Group of America	1	2	7	1	2.73

SiriusPoint presently has a consensus target price of $31.00, suggesting a potential upside of 31.13%. Reinsurance Group of America has a consensus target price of $259.56, suggesting a potential upside of 6.74%. Given SiriusPoint’s higher probable upside, equities analysts clearly believe SiriusPoint is more favorable than Reinsurance Group of America.

Valuation & Earnings

This table compares SiriusPoint and Reinsurance Group of America”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SiriusPoint	$3.21 billion	0.86	$459.60 million	$4.10	5.77
Reinsurance Group of America	$23.70 billion	0.67	$1.18 billion	$22.77	10.68

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

Volatility & Risk

SiriusPoint has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Reinsurance Group of America has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.

Insider and Institutional Ownership

52.8% of SiriusPoint shares are owned by institutional investors. Comparatively, 95.1% of Reinsurance Group of America shares are owned by institutional investors. 12.2% of SiriusPoint shares are owned by insiders. Comparatively, 0.6% of Reinsurance Group of America shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares SiriusPoint and Reinsurance Group of America’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SiriusPoint	15.56%	15.65%	2.76%
Reinsurance Group of America	5.81%	14.78%	1.24%

Summary

Reinsurance Group of America beats SiriusPoint on 8 of the 15 factors compared between the two stocks.

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.

About Reinsurance Group of America

Reinsurance Group of America, Incorporated engages in reinsurance business. The company offers individual and group life and health insurance products, such as term life, credit life, universal life, whole life, group life and health, joint and last survivor insurance, critical illness, disability, and longevity products; asset-intensive and financial reinsurance products; and other capital motivated solutions. It also provides reinsurance for mortality, morbidity, lapse, and investment-related risk associated with products; and reinsurance for investment-related risks. In addition, the company develops and markets technology solutions; and provides consulting and outsourcing solutions for the insurance and reinsurance industries. It operates in the United States, Latin America, Canada, Europe, the Middle East, Africa, and the Asia Pacific. The company was founded in 1973 and is headquartered in Chesterfield, Missouri.