Financial Analysis: TWFG (NASDAQ:TWFG) and SiriusPoint (NYSE:SPNT)

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

Analyst Recommendations

This is a breakdown of recent recommendations for TWFG and SiriusPoint, as reported by MarketBeat.

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

TWFG presently has a consensus target price of $24.86, suggesting a potential upside of 18.54%. SiriusPoint has a consensus target price of $28.00, suggesting a potential upside of 21.29%. Given SiriusPoint’s higher possible upside, analysts plainly believe SiriusPoint is more favorable than TWFG.

Insider & Institutional Ownership

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TWFG	$247.08 million	4.60	$7.96 million	$0.54	38.83
SiriusPoint	$3.21 billion	0.85	$459.60 million	$4.02	5.74

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

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

Risk & Volatility

TWFG has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, SiriusPoint has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.

Summary

SiriusPoint beats TWFG on 8 of the 13 factors compared between the two stocks.

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.

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.