Financial Analysis: Platinum Underwriters Holdings (PTP) & Third Point Reinsurance (TPRE)
Platinum Underwriters Holdings (NYSE: PTP) and Third Point Reinsurance (NYSE:TPRE) are both financials companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitabiliy, valuation, dividends, institutional ownership and analyst recommendations.
Insider & Institutional Ownership
68.0% of Third Point Reinsurance shares are held by institutional investors. 36.9% of Third Point Reinsurance shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Platinum Underwriters Holdings and Third Point Reinsurance’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Platinum Underwriters Holdings||24.85%||8.33%||3.89%|
|Third Point Reinsurance||22.18%||13.56%||5.04%|
Earnings and Valuation
This table compares Platinum Underwriters Holdings and Third Point Reinsurance’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Platinum Underwriters Holdings||N/A||N/A||N/A||N/A||N/A|
|Third Point Reinsurance||$922.81 million||1.73||$206.08 million||$1.92||7.73|
Third Point Reinsurance has higher revenue and earnings than Platinum Underwriters Holdings.
This is a breakdown of current ratings and recommmendations for Platinum Underwriters Holdings and Third Point Reinsurance, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Platinum Underwriters Holdings||0||0||0||0||N/A|
|Third Point Reinsurance||0||2||1||0||2.33|
Third Point Reinsurance has a consensus price target of $15.50, indicating a potential upside of 4.38%. Given Third Point Reinsurance’s higher probable upside, analysts plainly believe Third Point Reinsurance is more favorable than Platinum Underwriters Holdings.
Third Point Reinsurance beats Platinum Underwriters Holdings on 7 of the 8 factors compared between the two stocks.
About Platinum Underwriters Holdings
Platinum Underwriters Holdings, Ltd. (Platinum Holdings) is a holding company. Through its reinsurance subsidiaries the Company provides property and marine, casualty and finite risk reinsurance coverage to a diverse clientele of insurers and select reinsurers on a worldwide basis. The Company operates through two licensed reinsurance subsidiaries: Platinum Underwriters Bermuda, Ltd. (Platinum Bermuda), a Bermuda reinsurance company, and Platinum Underwriters Reinsurance, Inc. (Platinum US), a United States reinsurance company. Platinum Bermuda is a wholly owned subsidiary of Platinum Holdings and Platinum US is a wholly owned subsidiary of Platinum Finance. The Company operates in three segments: Property and Marine, Casualty and Finite Risk. The Property and Marine provides insurance coverage against loss of property. Casualty provides coverage for loss or damage to persons or property. The Finite Risk offers non-traditional reinsurance.
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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