SiriusPoint (NYSE:SPNT) and Prudential Financial (NYSE:PRU) Head to Head Review

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

Risk and Volatility

Prudential Financial has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, SiriusPoint has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Prudential Financial	4.65%	16.98%	0.68%
SiriusPoint	6.97%	11.31%	1.71%

Institutional & Insider Ownership

56.8% of Prudential Financial shares are held by institutional investors. Comparatively, 52.8% of SiriusPoint shares are held by institutional investors. 0.3% of Prudential Financial shares are held by company insiders. Comparatively, 11.7% of SiriusPoint shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Prudential Financial and SiriusPoint, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prudential Financial	1	11	1	0	2.00
SiriusPoint	0	1	2	2	3.20

Prudential Financial currently has a consensus target price of $120.73, indicating a potential upside of 13.01%. SiriusPoint has a consensus target price of $25.00, indicating a potential upside of 22.43%. Given SiriusPoint’s stronger consensus rating and higher probable upside, analysts clearly believe SiriusPoint is more favorable than Prudential Financial.

Earnings & Valuation

This table compares Prudential Financial and SiriusPoint”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prudential Financial	$57.93 billion	0.65	$2.73 billion	$7.28	14.67
SiriusPoint	$2.84 billion	0.84	$199.90 million	$1.59	12.84

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

Summary

SiriusPoint beats Prudential Financial on 8 of the 15 factors compared between the two stocks.

About Prudential Financial

Prudential Financial, Inc., together with its subsidiaries, provides insurance, investment management, and other financial products and services in the United States and internationally. It operates through PGIM, Retirement Strategies, Group Insurance, Individual Life, and International Businesses segments. The PGIM segment offers investment management services and solutions related to public fixed income, public equity, real estate debt and equity, private credit and other alternatives, and multi-asset class strategies to institutional and retail clients, as well as its general account. The Retirement Strategies segment provides a range of retirement investment, and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors; develops and distributes individual variable and fixed annuity products. The Group Insurance segment offers various group life, and long-term and short-term group disability, as well as group corporate-, bank-, and trust-owned life insurance in the United States primarily for institutional clients for use in connection with employee and membership benefits plans; sells accidental death and dismemberment, and other supplemental health solutions; and plan administration services in connection with its insurance coverages. The Individual Life segment develops and distributes variable life, universal life, and term life insurance products. The International Businesses segment develops and distributes life insurance, retirement products, investment products, and certain accident and health products; and advisory services. The company provides its products and services to individual and institutional customers through its proprietary and third-party distribution networks. Prudential Financial, Inc. was founded in 1875 and is headquartered in Newark, New Jersey.

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.