RenaissanceRe Holdings (NYSE: RNR) and Partnerre (NYSE:PRE) are both mid-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their profitabiliy, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.

Institutional and Insider Ownership

92.6% of RenaissanceRe Holdings shares are owned by institutional investors. 1.8% of RenaissanceRe Holdings shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for RenaissanceRe Holdings and Partnerre, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RenaissanceRe Holdings 0 7 0 0 2.00
Partnerre 0 0 0 0 N/A

RenaissanceRe Holdings currently has a consensus price target of $140.83, indicating a potential downside of 4.76%. Given RenaissanceRe Holdings’ higher probable upside, analysts clearly believe RenaissanceRe Holdings is more favorable than Partnerre.

Dividends

RenaissanceRe Holdings pays an annual dividend of $1.28 per share and has a dividend yield of 0.9%. Partnerre does not pay a dividend. RenaissanceRe Holdings pays out 10.9% of its earnings in the form of a dividend. RenaissanceRe Holdings has increased its dividend for 12 consecutive years and Partnerre has increased its dividend for 14 consecutive years.

Valuation & Earnings

This table compares RenaissanceRe Holdings and Partnerre’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
RenaissanceRe Holdings $1.77 billion 3.36 $710.24 million $11.74 12.60
Partnerre N/A N/A N/A N/A N/A

RenaissanceRe Holdings has higher revenue and earnings than Partnerre.

Profitability

This table compares RenaissanceRe Holdings and Partnerre’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RenaissanceRe Holdings 28.30% 8.49% 2.92%
Partnerre -14.76% -11.13% -2.58%

Summary

RenaissanceRe Holdings beats Partnerre on 8 of the 11 factors compared between the two stocks.

RenaissanceRe Holdings Company Profile

RenaissanceRe Holdings Ltd. provides reinsurance and insurance coverages and related services to a range of customers. The Company’s products include property, casualty and specialty reinsurance and certain insurance products principally distributed through intermediaries. Its segments include Property; Casualty and Specialty, and Other category. The Property segment consisted of catastrophe and other property reinsurance and insurance written on behalf of its operating subsidiaries and certain joint ventures managed by its ventures unit. The Casualty and Specialty segment consisted of casualty and specialty reinsurance and insurance written on behalf of its operating subsidiaries and certain joint ventures managed by its ventures unit. Its Other category includes its strategic investments, investments unit, corporate expenses, capital servicing. The Casualty and Specialty segment offers certain casualty insurance products through RenaissanceRe Syndicate 1458 (Syndicate 1458).

Partnerre Company Profile

PartnerRe Ltd. is the holding company engaged in the international reinsurance and insurance business. The Company operates in three segments: Non-life, Life and Health, and Corporate and Other. The Non-life segment’s operations are classified as North America, Global (Non-U.S.) Property and Casualty (Global (Non-U.S.) P&C), Global Specialty and Catastrophe. The Company’s Life and Health segment includes the mortality, longevity and accident and health lines of business. The Corporate and Other segment is engaged in investment related activities. Risks reinsured by the Company include property, casualty, motor, agriculture, aviation/space, catastrophe, credit/surety, engineering, energy, marine, specialty property, specialty casualty, multiline and other lines, mortality, longevity, accident and health, and alternative risk products. The Company’s alternative risk products include weather and credit protection to financial, industrial and service companies.

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