Analyzing SiriusPoint (NYSE:SPNT) and Radian Group (NYSE:RDN)

Radian Group (NYSE:RDN) and SiriusPoint (NYSE:SPNT) are both mid-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Insider & Institutional Ownership

95.3% of Radian Group shares are held by institutional investors. Comparatively, 52.8% of SiriusPoint shares are held by institutional investors. 2.0% of Radian Group shares are held by insiders. Comparatively, 11.7% of SiriusPoint shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Radian Group has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, SiriusPoint has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Radian Group	46.99%	13.07%	6.98%
SiriusPoint	14.34%	15.90%	2.57%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Radian Group	1	2	3	1	2.57
SiriusPoint	0	3	2	1	2.67

Radian Group presently has a consensus target price of $40.60, indicating a potential upside of 23.19%. SiriusPoint has a consensus target price of $25.00, indicating a potential upside of 16.44%. Given Radian Group’s higher possible upside, analysts clearly believe Radian Group is more favorable than SiriusPoint.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Radian Group	$1.20 billion	3.75	$582.64 million	$4.15	7.94
SiriusPoint	$3.21 billion	0.78	$459.60 million	$3.69	5.82

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

Summary

Radian Group beats SiriusPoint on 10 of the 14 factors compared between the two stocks.

About Radian Group

Radian Group Inc., together with its subsidiaries, engages in the mortgage and real estate services business in the United States. It operates through two segments, Mortgage Insurance and Homegenius segments. The Mortgage Insurance segment aggregates, manages, and distributes U.S. mortgage credit risk for mortgage lending institutions and mortgage credit investors, through private mortgage insurance on residential first-lien mortgage loans; and other credit risk management solutions, including contract underwriting. The Homegenius segment offers title services, including a suite of insurance and non-insurance titles; tax and title data, centralized recording, document retrieval, and default curative title services; deed and property reports; closing and settlement services; mortgage underwriting and processing; escrow; appraisal management; and real estate brokerage. This segment also provides real estate valuation products and services; asset management services for managing real estate owned properties, which includes a web-based workflow solution; and a suite of real estate technology products and services to facilitate real estate transactions, such as proprietary platforms as a service solution. It serves mortgage originators, such as mortgage bankers, commercial banks, savings institutions, credit unions, and community banks; and consumers, mortgage lenders, mortgage and real estate investors, government-sponsored enterprises, real estate brokers and agents, and corporations for their employees. The company was formerly known as CMAC Investment Corp. and changed its name to Radian Group Inc. in June 1999. Radian Group Inc. was founded in 1977 and is headquartered in Wayne, Pennsylvania.

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.