Analyzing SiriusPoint (NYSE:SPNT) and Goosehead Insurance (NASDAQ:GSHD)

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

Analyst Recommendations

This is a breakdown of current ratings for SiriusPoint and Goosehead Insurance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SiriusPoint	0	1	1	2	3.25
Goosehead Insurance	1	6	4	1	2.42

SiriusPoint currently has a consensus target price of $25.00, indicating a potential upside of 41.20%. Goosehead Insurance has a consensus target price of $108.91, indicating a potential upside of 52.77%. Given Goosehead Insurance’s higher probable upside, analysts clearly believe Goosehead Insurance is more favorable than SiriusPoint.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SiriusPoint	$2.60 billion	0.79	$199.90 million	$0.89	19.89
Goosehead Insurance	$314.51 million	8.51	$30.43 million	$1.13	63.09

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

Insider and Institutional Ownership

52.8% of SiriusPoint shares are owned by institutional investors. 11.7% of SiriusPoint shares are owned by insiders. Comparatively, 48.4% of Goosehead Insurance shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SiriusPoint	4.38%	6.57%	1.05%
Goosehead Insurance	8.76%	-59.49%	8.70%

Risk and Volatility

SiriusPoint has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Goosehead Insurance has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Summary

Goosehead Insurance beats SiriusPoint on 9 of the 15 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 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.