Head to Head Contrast: SiriusPoint (NYSE:SPNT) versus MetLife (NYSE:MET)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SiriusPoint	14.93%	15.89%	2.87%
MetLife	6.21%	24.19%	0.92%

Volatility and Risk

SiriusPoint has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, MetLife has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for SiriusPoint and MetLife, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SiriusPoint	0	3	2	1	2.67
MetLife	0	1	14	0	2.93

SiriusPoint currently has a consensus target price of $30.50, indicating a potential upside of 17.39%. MetLife has a consensus target price of $106.62, indicating a potential upside of 3.67%. Given SiriusPoint’s higher possible upside, equities research analysts clearly believe SiriusPoint is more favorable than MetLife.

Earnings and Valuation

This table compares SiriusPoint and MetLife”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SiriusPoint	$3.24 billion	0.93	$459.60 million	$4.11	6.32
MetLife	$82.04 billion	0.81	$3.38 billion	$7.67	13.41

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

Institutional and Insider Ownership

52.8% of SiriusPoint shares are held by institutional investors. Comparatively, 95.0% of MetLife shares are held by institutional investors. 12.2% of SiriusPoint shares are held by insiders. Comparatively, 0.4% of MetLife shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

MetLife beats SiriusPoint on 9 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 MetLife

MetLife, Inc., a financial services company, provides insurance, annuities, employee benefits, and asset management services worldwide. It operates through six segments: Retirement and Income Solutions; Group Benefits; Asia; Latin America; Europe, the Middle East and Africa; and MetLife Holdings. The company offers life, dental, group short-and long-term disability, individual disability, pet insurance, accidental death and dismemberment, vision, and accident and health coverages, as well as prepaid legal plans; administrative services-only arrangements to employers; and general and separate account, and synthetic guaranteed interest contracts, as well as private floating rate funding agreements. It also provides pension risk transfers, institutional income annuities, structured settlements, and capital markets investment products; and other products and services, such as life insurance products and funding agreements for funding postretirement benefits, as well as company, bank, or trust-owned life insurance used to finance nonqualified benefit programs for executives. In addition, it provides fixed, indexed-linked, and variable annuities; pension products; regular savings products; whole and term life, endowments, universal and variable life, and group life products; longevity reinsurance solutions; credit insurance products; and protection against long-term health care services. MetLife, Inc. was incorporated in 1999 and is based in New York, New York.