Third Point Reinsurance (NYSE: TPRE) and Partnerre (NYSE:PRE) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Third Point Reinsurance and Partnerre, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Third Point Reinsurance 0 2 1 0 2.33
Partnerre 0 0 0 0 N/A

Third Point Reinsurance currently has a consensus target price of $15.50, indicating a potential downside of 0.32%. Given Third Point Reinsurance’s higher probable upside, analysts clearly believe Third Point Reinsurance is more favorable than Partnerre.

Valuation & Earnings

This table compares Third Point Reinsurance and Partnerre’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Third Point Reinsurance $924.00 million 1.74 $198.30 million $1.92 8.10
Partnerre N/A N/A N/A N/A N/A

Third Point Reinsurance has higher revenue and earnings than Partnerre.

Profitability

This table compares Third Point Reinsurance and Partnerre’s 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%
Partnerre -14.76% -11.13% -2.58%

Institutional & Insider Ownership

68.7% of Third Point Reinsurance shares are held by institutional investors. 36.9% of Third Point Reinsurance 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.

Summary

Third Point Reinsurance beats Partnerre on 8 of the 9 factors compared between the two stocks.

Third Point Reinsurance Company Profile

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.

Partnerre Company Profile

PartnerRe Ltd. is the holding company engaged in the international reinsurance and insurance business. The Company operates in three segments: Non-life, Life and Health, and Corporate and Other. The Non-life segment’s operations are classified as North America, Global (Non-U.S.) Property and Casualty (Global (Non-U.S.) P&C), Global Specialty and Catastrophe. The Company’s Life and Health segment includes the mortality, longevity and accident and health lines of business. The Corporate and Other segment is engaged in investment related activities. Risks reinsured by the Company include property, casualty, motor, agriculture, aviation/space, catastrophe, credit/surety, engineering, energy, marine, specialty property, specialty casualty, multiline and other lines, mortality, longevity, accident and health, and alternative risk products. The Company’s alternative risk products include weather and credit protection to financial, industrial and service companies.

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