Fidelis Insurance (NYSE:FIHL) versus MBIA (NYSE:MBI) Head-To-Head Analysis

Fidelis Insurance (NYSE:FIHL) and MBIA (NYSE:MBI) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Risk and Volatility

Fidelis Insurance has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, MBIA has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500.

Valuation & Earnings

This table compares Fidelis Insurance and MBIA”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelis Insurance	$2.17 billion	0.96	$225.50 million	$2.21	9.76
MBIA	$80.00 million	3.75	-$177.00 million	($3.10)	-1.90

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

Insider and Institutional Ownership

82.0% of Fidelis Insurance shares are held by institutional investors. Comparatively, 61.0% of MBIA shares are held by institutional investors. 11.3% of MBIA shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Fidelis Insurance and MBIA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelis Insurance	2	3	3	0	2.13
MBIA	1	0	1	0	2.00

Fidelis Insurance presently has a consensus target price of $21.92, suggesting a potential upside of 1.56%. MBIA has a consensus target price of $7.50, suggesting a potential upside of 27.38%. Given MBIA’s higher probable upside, analysts plainly believe MBIA is more favorable than Fidelis Insurance.

Profitability

This table compares Fidelis Insurance and MBIA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fidelis Insurance	9.02%	8.62%	1.62%
MBIA	-172.22%	N/A	-1.71%

Summary

Fidelis Insurance beats MBIA on 10 of the 14 factors compared between the two stocks.

About Fidelis Insurance

Fidelis Insurance Holdings Limited, a specialty insurer, provides insurance and reinsurance solutions in Bermuda, the Republic of Ireland, and the United Kingdom. It operates in three segments: Specialty, Reinsurance, and Bespoke segments. The Specialty segment offers aviation and aerospace, energy, marine, property direct and facultative, and other specialty risk solutions. The Reinsurance segment provides property, retrocession, and whole account reinsurance solutions. The Bespoke segment offers customized risk solutions for clients that include credit and political risk, as well as other risk transfer opportunities, including political violence and terrorism, limited cyber reinsurance, tax liabilities, title, transactional liabilities, and other bespoke solutions. Fidelis Insurance Holdings Limited was incorporated in 2014 and is headquartered in Pembroke, Bermuda.

About MBIA

MBIA Inc. provides financial guarantee insurance services to public finance markets in the United States. It operates United States (U.S.) Public Finance Insurance, and International and Structured Finance Insurance segments. The company issues financial guarantees for municipal bonds, including tax-exempt and taxable indebtedness of the U.S. political subdivisions, as well as utility districts, airports, health care institutions, higher educational facilities, housing authorities, and other similar agencies and obligations issued by private entities. It also insures the non-U.S. public finance and global structured finance, including asset-backed obligations; and sovereign-related and sub-sovereign bonds, and privately issued bonds used for the financing for utilities, toll roads, bridges, public transportation facilities, and other types of infrastructure projects, as well as offers third-party reinsurance services. MBIA Inc. was founded in 1973 and is headquartered in Purchase, New York.