Head to Head Analysis: Goosehead Insurance (NASDAQ:GSHD) and RenaissanceRe (NYSE:RNR)

RenaissanceRe (NYSE:RNR) and Goosehead Insurance (NASDAQ:GSHD) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Insider and Institutional Ownership

100.0% of RenaissanceRe shares are owned by institutional investors. 2.3% of RenaissanceRe shares are owned by company insiders. Comparatively, 38.1% of Goosehead Insurance shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

RenaissanceRe pays an annual dividend of $1.64 per share and has a dividend yield of 0.5%. Goosehead Insurance pays an annual dividend of $4.60 per share and has a dividend yield of 10.1%. RenaissanceRe pays out 2.8% of its earnings in the form of a dividend. Goosehead Insurance pays out 335.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. RenaissanceRe has raised its dividend for 30 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RenaissanceRe	23.65%	23.10%	4.62%
Goosehead Insurance	8.78%	-21.00%	9.43%

Valuation & Earnings

This table compares RenaissanceRe and Goosehead Insurance”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RenaissanceRe	$11.06 billion	1.20	$2.68 billion	$58.27	5.47
Goosehead Insurance	$402.16 million	4.01	$27.83 million	$1.37	33.11

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

Volatility & Risk

RenaissanceRe has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500. Comparatively, Goosehead Insurance has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for RenaissanceRe and Goosehead Insurance, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RenaissanceRe	1	11	6	0	2.28
Goosehead Insurance	1	6	7	1	2.53

RenaissanceRe presently has a consensus target price of $338.12, indicating a potential upside of 6.07%. Goosehead Insurance has a consensus target price of $68.45, indicating a potential upside of 50.91%. Given Goosehead Insurance’s stronger consensus rating and higher possible upside, analysts clearly believe Goosehead Insurance is more favorable than RenaissanceRe.

Summary

Goosehead Insurance beats RenaissanceRe on 10 of the 18 factors compared between the two stocks.

About RenaissanceRe

RenaissanceRe Holdings Ltd., together with its subsidiaries, provides reinsurance and insurance products in the United States and internationally. The company operates through Property, and Casualty and Specialty segments. The Property segment writes property catastrophe excess of loss reinsurance and excess of loss reinsurance to insure insurance and reinsurance companies against natural and man-made catastrophes, including hurricanes, earthquakes, typhoons, and tsunamis, as well as winter storms, freezes, floods, fires, windstorms, tornadoes, explosions, and acts of terrorism; and other property class of products, such as proportional reinsurance, property per risk, property reinsurance, binding facilities, and regional U.S. multi-line reinsurance. The Casualty and Specialty segment writes various classes of products, such as directors and officers, medical malpractice, and professional indemnity; automobile and employer’s liability, casualty clash, umbrella or excess casualty, workers’ compensation, and general liability; financial and mortgage guaranty, political risk, surety, and trade credit; and accident and health, agriculture, aviation, cyber, energy, marine, satellite, and terrorism. It distributes products and services primarily through intermediaries. The company invests in and manages funds. RenaissanceRe Holdings Ltd. was founded in 1993 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.