Goosehead Insurance (NASDAQ:GSHD) vs. RenaissanceRe (NYSE:RNR) Head-To-Head Analysis

Goosehead Insurance (NASDAQ:GSHD) and RenaissanceRe (NYSE:RNR) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Profitability

This table compares Goosehead Insurance and RenaissanceRe’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Goosehead Insurance	8.78%	-21.00%	9.43%
RenaissanceRe	23.65%	23.10%	4.62%

Volatility and Risk

Goosehead Insurance has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, RenaissanceRe has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Goosehead Insurance	$365.30 million	4.22	$27.83 million	$1.37	31.67
RenaissanceRe	$12.85 billion	1.05	$2.68 billion	$58.27	5.57

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

Institutional and Insider Ownership

100.0% of RenaissanceRe shares are owned by institutional investors. 38.1% of Goosehead Insurance shares are owned by insiders. Comparatively, 2.3% of RenaissanceRe shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Goosehead Insurance and RenaissanceRe, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Goosehead Insurance	1	7	6	1	2.47
RenaissanceRe	1	11	6	0	2.28

Goosehead Insurance currently has a consensus target price of $66.27, indicating a potential upside of 52.74%. RenaissanceRe has a consensus target price of $338.12, indicating a potential upside of 4.26%. Given Goosehead Insurance’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Goosehead Insurance is more favorable than RenaissanceRe.

Summary

Goosehead Insurance beats RenaissanceRe on 8 of the 14 factors compared between the two stocks.

About Goosehead Insurance

Goosehead Insurance, Inc. operates as a holding company for Goosehead Financial, LLC that engages in the provision of personal lines insurance agency services in the United States. The company offers homeowner’s, automotive, dwelling property, flood, wind, earthquake, excess liability or umbrella, motorcycle, recreational vehicle, general liability, property, and life insurance products and services. As of December 31, 2023, it operated 1,415 franchise locations. The company was founded in 2003 and is headquartered in Westlake, Texas.

About RenaissanceRe

RenaissanceRe Holdings Ltd., together with its subsidiaries, provides reinsurance and insurance products in the United States and internationally. The company operates through Property, and Casualty and Specialty segments. The Property segment writes property catastrophe excess of loss reinsurance and excess of loss reinsurance to insure insurance and reinsurance companies against natural and man-made catastrophes, including hurricanes, earthquakes, typhoons, and tsunamis, as well as winter storms, freezes, floods, fires, windstorms, tornadoes, explosions, and acts of terrorism; and other property class of products, such as proportional reinsurance, property per risk, property reinsurance, binding facilities, and regional U.S. multi-line reinsurance. The Casualty and Specialty segment writes various classes of products, such as directors and officers, medical malpractice, and professional indemnity; automobile and employer’s liability, casualty clash, umbrella or excess casualty, workers’ compensation, and general liability; financial and mortgage guaranty, political risk, surety, and trade credit; and accident and health, agriculture, aviation, cyber, energy, marine, satellite, and terrorism. It distributes products and services primarily through intermediaries. The company invests in and manages funds. RenaissanceRe Holdings Ltd. was founded in 1993 and is headquartered in Pembroke, Bermuda.