Analyzing SiriusPoint (NYSE:SPNT) & American International Group (NYSE:AIG)

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

Volatility & Risk

SiriusPoint has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, American International Group has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.

Institutional & Insider Ownership

52.8% of SiriusPoint shares are owned by institutional investors. Comparatively, 90.6% of American International Group shares are owned by institutional investors. 12.2% of SiriusPoint shares are owned by company insiders. Comparatively, 0.6% of American International Group shares are owned by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SiriusPoint	15.56%	15.65%	2.76%
American International Group	11.13%	11.05%	2.78%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SiriusPoint	$3.24 billion	0.93	$459.60 million	$4.10	6.32
American International Group	$26.77 billion	1.59	$3.10 billion	$5.47	14.90

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

Analyst Ratings

This is a summary of recent ratings and price targets for SiriusPoint and American International Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SiriusPoint	0	3	2	1	2.67
American International Group	0	10	8	0	2.44

SiriusPoint currently has a consensus target price of $30.50, suggesting a potential upside of 17.80%. American International Group has a consensus target price of $87.68, suggesting a potential upside of 7.61%. Given SiriusPoint’s stronger consensus rating and higher possible upside, equities analysts clearly believe SiriusPoint is more favorable than American International Group.

Summary

American International Group beats SiriusPoint on 8 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 American International Group

American International Group, Inc. offers insurance products for commercial, institutional, and individual customers in North America and internationally. It operates through three segments: General Insurance, Life and Retirement, and Other Operations. The General Insurance segment provides commercial and industrial property insurance, including business interruption and package insurance that cover exposure to made and natural disasters; general liability, environmental, commercial automobile liability, workers’ compensation, excess casualty, and crisis management insurance products; and professional liability insurance. This segment offers marine, energy-related property insurance, aviation, political risk, trade credit, trade finance, and portfolio solutions, as well as operates reinsurance business; voluntary and sponsor-paid personal accident, and supplemental health products; and personal auto and personal property insurance. Its Life and Retirement segment offers individual retirement products, including variable, fixed index, and fixed annuities, as well as retail mutual funds; group retirement products comprising record-keeping, plan administrative and compliance services, financial planning, and advisory solutions; life insurance, including term and universal life insurance; and institutional markets products, which includes wrap products, structured settlement, pension risk transfer annuities, corporate and bank-owned life insurance, high net worth, and guaranteed investment contract products. It distributes its products through a network of brokers, agents, advisors, banks, and other distributors. The company was founded in 1919 and is headquartered in New York, New York.