Financial Survey: AIFU (NASDAQ:AIFU) versus SiriusPoint (NYSE:SPNT)

SiriusPoint (NYSE:SPNT) and AIFU (NASDAQ:AIFU) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Institutional & Insider Ownership

52.8% of SiriusPoint shares are held by institutional investors. Comparatively, 26.7% of AIFU shares are held by institutional investors. 10.3% of SiriusPoint shares are held by insiders. Comparatively, 25.6% of AIFU shares are held by 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.

Risk and Volatility

SiriusPoint has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, AIFU has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SiriusPoint	$2.60 billion	0.97	$199.90 million	$1.59	13.58
AIFU	$1.21 billion	0.01	$62.33 million	$14.60	0.20

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SiriusPoint	6.97%	11.31%	1.71%
AIFU	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for SiriusPoint and AIFU, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SiriusPoint	0	1	2	3	3.33
AIFU	0	1	0	0	2.00

SiriusPoint currently has a consensus target price of $25.00, suggesting a potential upside of 15.82%. Given SiriusPoint’s stronger consensus rating and higher probable upside, equities analysts clearly believe SiriusPoint is more favorable than AIFU.

Summary

SiriusPoint beats AIFU on 13 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 AIFU

AIX, Inc. engages in the provision of agency services and insurance claims adjusting services. It operates through the Insurance Agency and Claims Adjusting segments. The Insurance Agency segment includes providing agency services for insurance products and life insurance products. The Claims Adjusting segment provides pre-underwriting survey services, claims adjusting services, disposal of residual value services, loading and unloading supervision services, and consulting services. The company was founded by Yin An Hu and Qiu Ping Lai in 1998 and is headquartered in Guangzhou, China.