Financial Survey: SiriusPoint (NYSE:SPNT) and MGIC Investment (NYSE:MTG)

MGIC Investment (NYSE:MTG) and SiriusPoint (NYSE:SPNT) are both mid-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for MGIC Investment and SiriusPoint, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGIC Investment	0	3	1	0	2.25
SiriusPoint	0	3	1	2	2.83

MGIC Investment currently has a consensus target price of $28.00, suggesting a potential upside of 5.26%. SiriusPoint has a consensus target price of $25.00, suggesting a potential upside of 19.43%. Given SiriusPoint’s stronger consensus rating and higher probable upside, analysts plainly believe SiriusPoint is more favorable than MGIC Investment.

Risk and Volatility

MGIC Investment has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, SiriusPoint has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.

Earnings & Valuation

This table compares MGIC Investment and SiriusPoint”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGIC Investment	$1.21 billion	4.71	$738.35 million	$3.14	8.47
SiriusPoint	$3.18 billion	0.77	$459.60 million	$3.69	5.67

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

Insider & Institutional Ownership

95.6% of MGIC Investment shares are held by institutional investors. Comparatively, 52.8% of SiriusPoint shares are held by institutional investors. 1.4% of MGIC Investment shares are held by company insiders. Comparatively, 11.7% of SiriusPoint shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares MGIC Investment and SiriusPoint’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MGIC Investment	60.84%	14.33%	11.21%
SiriusPoint	14.34%	15.90%	2.57%

About MGIC Investment

MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government sponsored entities in the United States, the District of Columbia, Puerto Rico, and Guam. The company offers primary mortgage insurance that provides mortgage default protection on individual loans, as well as covers unpaid loan principal, delinquent interest, and various expenses associated with the default and subsequent foreclosure. It also provides pool insurance for secondary market mortgage transactions; and contract underwriting services, as well as reinsurance. The company serves originators of residential mortgage loans, including savings institutions, commercial banks, mortgage brokers, credit unions, mortgage bankers, and other lenders. MGIC Investment Corporation was founded in 1957 and is headquartered in Milwaukee, Wisconsin.

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.