Analyzing Equitable (NYSE:EQH) & SiriusPoint (NYSE:SPNT)

Equitable (NYSE:EQH) 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 analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for Equitable and SiriusPoint, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equitable	0	2	9	1	2.92
SiriusPoint	0	1	2	3	3.33

Equitable currently has a consensus price target of $64.18, indicating a potential upside of 32.98%. SiriusPoint has a consensus price target of $25.00, indicating a potential upside of 11.46%. Given Equitable’s higher possible upside, analysts clearly believe Equitable is more favorable than SiriusPoint.

Risk & Volatility

Equitable has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, SiriusPoint has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Equitable	-5.80%	107.71%	0.59%
SiriusPoint	6.97%	11.31%	1.71%

Earnings and Valuation

This table compares Equitable and SiriusPoint”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equitable	$12.44 billion	1.11	$1.31 billion	($2.76)	-17.49
SiriusPoint	$2.60 billion	1.01	$199.90 million	$1.59	14.11

Equitable has higher revenue and earnings than SiriusPoint. Equitable 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

92.7% of Equitable shares are owned by institutional investors. Comparatively, 52.8% of SiriusPoint shares are owned by institutional investors. 1.1% of Equitable shares are owned by insiders. Comparatively, 11.7% of SiriusPoint 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.

Summary

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

About Equitable

Equitable Holdings, Inc., together with its consolidated subsidiaries, operates as a diversified financial services company worldwide. The company operates through six segments: Individual Retirement, Group Retirement, Investment Management and Research, Protection Solutions, Wealth Management, and Legacy. The Individual Retirement segment offers a suite of variable annuity products primarily to affluent and high net worth individuals. The Group Retirement segment provides tax-deferred investment and retirement services or products to plans sponsored by educational entities, municipalities, and not-for-profit entities, as well as small and medium-sized businesses. The Investment Management and Research segment offers diversified investment management, research, and related services to various clients through institutional. The Protection Solutions segment provides life insurance products, such as VUL insurance and IUL insurance, term life, and employee benefits business, such as dental, vision, life, as well as short- and long-term disability insurance products to small and medium-sized businesses. The Wealth Management segment offers discretionary and non-discretionary investment advisory accounts, financial planning and advice, life insurance, and annuity products. The Legacy segment consists of the capital intensive fixed-rate GMxB business that includes ROP death benefits. The company was formerly known as AXA Equitable Holdings, Inc. and changed its name to Equitable Holdings, Inc. in January 2020. Equitable Holdings, Inc. was founded in 1859 and is based in New York, New York.

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.