Contrasting SiriusPoint (NYSE:SPNT) & SelectQuote (NYSE:SLQT)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SelectQuote	$1.53 billion	0.12	$47.58 million	$0.09	11.50
SiriusPoint	$3.22 billion	0.83	$459.60 million	$4.02	5.72

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

Risk and Volatility

SelectQuote has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, SiriusPoint has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.

Institutional & Insider Ownership

34.6% of SelectQuote shares are held by institutional investors. Comparatively, 52.8% of SiriusPoint shares are held by institutional investors. 13.1% of SelectQuote shares are held by company insiders. Comparatively, 12.2% of SiriusPoint shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SelectQuote	5.60%	20.49%	5.58%
SiriusPoint	15.38%	16.92%	2.88%

Analyst Ratings

This is a breakdown of current recommendations and price targets for SelectQuote and SiriusPoint, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SelectQuote	1	2	0	2	2.60
SiriusPoint	0	2	2	2	3.00

SelectQuote presently has a consensus target price of $2.92, suggesting a potential upside of 181.80%. SiriusPoint has a consensus target price of $28.00, suggesting a potential upside of 21.82%. Given SelectQuote’s higher probable upside, analysts clearly believe SelectQuote is more favorable than SiriusPoint.

Summary

SiriusPoint beats SelectQuote on 8 of the 14 factors compared between the two stocks.

About SelectQuote

SelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance products and healthcare services in the United States. The company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance related products, including prescription drugs, dental, vision, and hearing plans; life insurance products, such as term life, final expense, and other ancillary products, including critical illness, accidental death, and juvenile insurance; homeowners, auto, dwelling fire, and other ancillary insurance products; and non-commercial auto and home property, and casualty policies. The company also provides SelectRx, an accredited patient-centered pharmacy home pharmacy, which offers essential prescription medications, OTC medications, customized medication packaging, medication therapy management, and long-term pharmacy care; and population health that helps members understand the benefits available under their health plans, and contracts with insurance carriers. SelectQuote, Inc. was incorporated in 1999 and is headquartered in Overland Park, Kansas.

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.