Critical Analysis: SiriusPoint (NYSE:SPNT) & Hamilton Insurance Group (NYSE:HG)

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

Valuation & Earnings

This table compares Hamilton Insurance Group and SiriusPoint”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hamilton Insurance Group	$2.30 billion	0.84	$258.73 million	$4.47	4.25
SiriusPoint	$2.61 billion	0.96	$354.80 million	$1.59	9.80

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

Insider and Institutional Ownership

29.2% of Hamilton Insurance Group shares are held by institutional investors. Comparatively, 52.8% of SiriusPoint shares are held by institutional investors. 2.7% of Hamilton Insurance Group shares are held by insiders. Comparatively, 10.3% of SiriusPoint shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Hamilton Insurance Group and SiriusPoint’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hamilton Insurance Group	21.88%	21.92%	6.70%
SiriusPoint	11.94%	12.91%	2.45%

Analyst Recommendations

This is a summary of current ratings for Hamilton Insurance Group and SiriusPoint, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hamilton Insurance Group	0	1	6	0	2.86
SiriusPoint	0	0	0	0	0.00

Hamilton Insurance Group presently has a consensus target price of $21.43, suggesting a potential upside of 12.78%. Given Hamilton Insurance Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Hamilton Insurance Group is more favorable than SiriusPoint.

Summary

Hamilton Insurance Group beats SiriusPoint on 7 of the 13 factors compared between the two stocks.

About Hamilton Insurance Group

Hamilton Insurance Group, Ltd., through its subsidiaries, provides underwriting specialty insurance and reinsurance risks in Bermuda and internationally. The company operates Hamilton Global Specialty, Hamilton Select, and Hamilton Re underwriting platforms. The company offers casualty reinsurance products, such as commercial motor, general liability, healthcare, multiline, personal motor, professional liability, umbrella and excess casualty, and worker's compensation and employer's liability reinsurance; property reinsurance and insurance; and specialty reinsurance solutions, including accident and health, aviation and space, crisis management, mortgage, financial lines, marine and energy, and multiline specialty. In addition, it offers accident and health, cyber, energy, environmental, financial lines, fine art and specie, kidnap and ransom, mergers and acquisitions, marine and energy liability, political risk and violence, professional liability, property binders, property direct and facultative, professional lines, space, upstream energy, excess casualty, war and terrorism, allied medical, management liability, medical professionals, general liability, products liability and contractors, and small business casualty insurance plans, as well as surety and treaty reinsurance products. The company was incorporated in 2013 and is headquartered in Pembroke, Bermuda.

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.