Critical Review: RenaissanceRe (NYSE:RNR) and The Seibels Bruce Group (OTCMKTS:SBBG)

The Seibels Bruce Group (OTCMKTS:SBBG) and RenaissanceRe (NYSE:RNR) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Earnings & Valuation

This table compares The Seibels Bruce Group and RenaissanceRe”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Seibels Bruce Group	N/A	N/A	N/A	N/A	N/A
RenaissanceRe	$11.65 billion	0.99	$1.87 billion	$31.35	7.50

RenaissanceRe has higher revenue and earnings than The Seibels Bruce Group.

Dividends

The Seibels Bruce Group pays an annual dividend of $150.00 per share. RenaissanceRe pays an annual dividend of $1.60 per share and has a dividend yield of 0.7%. RenaissanceRe pays out 5.1% of its earnings in the form of a dividend. RenaissanceRe has increased its dividend for 30 consecutive years. RenaissanceRe is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

100.0% of RenaissanceRe shares are owned by institutional investors. 55.4% of The Seibels Bruce Group shares are owned by insiders. Comparatively, 1.3% of RenaissanceRe shares are owned 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.

Profitability

This table compares The Seibels Bruce Group and RenaissanceRe’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Seibels Bruce Group	N/A	N/A	N/A
RenaissanceRe	15.99%	23.41%	4.41%

Risk and Volatility

The Seibels Bruce Group has a beta of 3.8, suggesting that its stock price is 280% more volatile than the S&P 500. Comparatively, RenaissanceRe has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for The Seibels Bruce Group and RenaissanceRe, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Seibels Bruce Group	0	0	0	0	0.00
RenaissanceRe	2	3	6	0	2.36

RenaissanceRe has a consensus price target of $283.80, indicating a potential upside of 20.76%. Given RenaissanceRe’s stronger consensus rating and higher probable upside, analysts clearly believe RenaissanceRe is more favorable than The Seibels Bruce Group.

Summary

RenaissanceRe beats The Seibels Bruce Group on 10 of the 13 factors compared between the two stocks.

About The Seibels Bruce Group

The Seibels Bruce Group, Inc. provides processing, technology, and claims solutions to the property and casualty insurance industry. The company offers processing solutions for coastal markets; business process outsourcing; claims administration solutions; information technology outsourcing; and professional services. It also provides technology solutions, such as IPX enterprise insurance suite, CPX claims management system, FNOL first notice of loss, and reinspection processing xpert solutions; and claims solutions, including third party administration, catastrophe management, first notice of loss, multi-line adjusting and examination, reinspection, and subrogation/salvage services. The company was founded in 1869 and is based in Columbia, South Carolina.

About RenaissanceRe

RenaissanceRe Holdings Ltd., together with its subsidiaries, provides reinsurance and insurance products in the United States and internationally. The company operates through Property, and Casualty and Specialty segments. The Property segment writes property catastrophe excess of loss reinsurance and excess of loss reinsurance to insure insurance and reinsurance companies against natural and man-made catastrophes, including hurricanes, earthquakes, typhoons, and tsunamis, as well as winter storms, freezes, floods, fires, windstorms, tornadoes, explosions, and acts of terrorism; and other property class of products, such as proportional reinsurance, property per risk, property reinsurance, binding facilities, and regional U.S. multi-line reinsurance. The Casualty and Specialty segment writes various classes of products, such as directors and officers, medical malpractice, and professional indemnity; automobile and employer’s liability, casualty clash, umbrella or excess casualty, workers’ compensation, and general liability; financial and mortgage guaranty, political risk, surety, and trade credit; and accident and health, agriculture, aviation, cyber, energy, marine, satellite, and terrorism. It distributes products and services primarily through intermediaries. The company invests in and manages funds. RenaissanceRe Holdings Ltd. was founded in 1993 and is headquartered in Pembroke, Bermuda.