Third Point Reinsurance (NYSE: TPRE) and Platinum Underwriters Holdings (NYSE:PTP) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.
Insider and Institutional Ownership
66.9% of Third Point Reinsurance shares are owned by institutional investors. 36.9% of Third Point Reinsurance shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for Third Point Reinsurance and Platinum Underwriters Holdings, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Third Point Reinsurance||0||2||1||0||2.33|
|Platinum Underwriters Holdings||0||0||0||0||N/A|
Third Point Reinsurance presently has a consensus target price of $15.50, indicating a potential upside of 8.39%. Given Third Point Reinsurance’s higher probable upside, analysts plainly believe Third Point Reinsurance is more favorable than Platinum Underwriters Holdings.
This table compares Third Point Reinsurance and Platinum Underwriters Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Third Point Reinsurance||22.18%||13.56%||5.04%|
|Platinum Underwriters Holdings||24.85%||8.33%||3.89%|
Earnings and Valuation
This table compares Third Point Reinsurance and Platinum Underwriters Holdings’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Third Point Reinsurance||$924.00 million||1.60||$198.30 million||$1.92||7.45|
|Platinum Underwriters Holdings||N/A||N/A||N/A||N/A||N/A|
Third Point Reinsurance has higher revenue and earnings than Platinum Underwriters Holdings.
Third Point Reinsurance beats Platinum Underwriters Holdings on 7 of the 8 factors compared between the two stocks.
About Third Point Reinsurance
Third Point Reinsurance Ltd. is a holding company. Through the Company’s reinsurance subsidiaries, it provides property and casualty reinsurance coverage to insurance and reinsurance companies. The Company’s segments include Property and Casualty Reinsurance, and Corporate. The Company’s investable assets are managed by its investment manager, Third Point LLC. The Company also writes reinsurance contracts that provide protection against adverse development on loss reserves. Through Third Point LLC, the Company makes investments globally in all sectors, and in equity, credit, commodity, currency, options and other instruments. The Company also acts as the underwriter for the majority of the premium that it underwrites. The Company writes reinsurance contracts covering product lines, such as property, workers’ compensation, auto, general liability, professional liability, credit and financial lines, and multi-line.
About Platinum Underwriters Holdings
Platinum Underwriters Holdings, Ltd. (Platinum Holdings) is a holding company. Through its reinsurance subsidiaries the Company provides property and marine, casualty and finite risk reinsurance coverage to a diverse clientele of insurers and select reinsurers on a worldwide basis. The Company operates through two licensed reinsurance subsidiaries: Platinum Underwriters Bermuda, Ltd. (Platinum Bermuda), a Bermuda reinsurance company, and Platinum Underwriters Reinsurance, Inc. (Platinum US), a United States reinsurance company. Platinum Bermuda is a wholly owned subsidiary of Platinum Holdings and Platinum US is a wholly owned subsidiary of Platinum Finance. The Company operates in three segments: Property and Marine, Casualty and Finite Risk. The Property and Marine provides insurance coverage against loss of property. Casualty provides coverage for loss or damage to persons or property. The Finite Risk offers non-traditional reinsurance.
Receive News & Ratings for Third Point Reinsurance Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Third Point Reinsurance Ltd. and related companies with MarketBeat.com's FREE daily email newsletter.