Head-To-Head Survey: SiriusPoint (NYSE:SPNT) & TWFG (NASDAQ:TWFG)

SiriusPoint (NYSE:SPNT) and TWFG (NASDAQ:TWFG) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.

Risk and Volatility

SiriusPoint has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, TWFG has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Institutional & Insider Ownership

52.8% of SiriusPoint shares are owned by institutional investors. 12.2% of SiriusPoint shares are owned by insiders. Comparatively, 68.4% of TWFG shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares SiriusPoint and TWFG”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SiriusPoint	$3.21 billion	0.84	$459.60 million	$4.02	5.68
TWFG	$247.08 million	4.71	$7.96 million	$0.54	39.81

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SiriusPoint	15.38%	16.92%	2.88%
TWFG	3.04%	15.96%	12.76%

Analyst Ratings

This is a breakdown of recent ratings and price targets for SiriusPoint and TWFG, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SiriusPoint	0	3	3	0	2.50
TWFG	1	3	3	1	2.50

SiriusPoint currently has a consensus price target of $28.00, suggesting a potential upside of 22.61%. TWFG has a consensus price target of $24.86, suggesting a potential upside of 15.61%. Given SiriusPoint’s higher possible upside, equities analysts plainly believe SiriusPoint is more favorable than TWFG.

Summary

SiriusPoint beats TWFG on 8 of the 13 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 TWFG

TWFG, Inc. operates an independent distribution platform for personal and commercial insurance products in the United States. Its personal and commercial insurance products include auto, home, renters, life, health, motorcycle, umbrella, boat, recreational vehicle, flood, wind, event, luxury item, general liability, property, business auto, workers’ compensation, business owner policy, and professional liability insurance products, as well as commercial bonds and group benefits. The company was founded in 2001 and is based in The Woodlands, Texas. TWFG, Inc. operates as a subsidiary of Bunch Family Holdings, LLC.