Contrasting MBIA (NYSE:MBI) and Corebridge Financial (NYSE:CRBG)

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

Insider and Institutional Ownership

98.3% of Corebridge Financial shares are held by institutional investors. Comparatively, 61.0% of MBIA shares are held by institutional investors. 0.3% of Corebridge Financial shares are held by company insiders. Comparatively, 11.3% of MBIA shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Corebridge Financial has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, MBIA has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500.

Profitability

This table compares Corebridge Financial and MBIA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corebridge Financial	1.20%	18.44%	0.59%
MBIA	-172.22%	N/A	-1.71%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Corebridge Financial and MBIA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corebridge Financial	0	6	9	0	2.60
MBIA	1	0	1	0	2.00

Corebridge Financial currently has a consensus price target of $36.75, suggesting a potential upside of 13.68%. MBIA has a consensus price target of $7.50, suggesting a potential upside of 37.24%. Given MBIA’s higher probable upside, analysts clearly believe MBIA is more favorable than Corebridge Financial.

Valuation & Earnings

This table compares Corebridge Financial and MBIA”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corebridge Financial	$18.43 billion	0.78	-$366.00 million	$0.55	58.78
MBIA	$90.00 million	3.09	-$177.00 million	($3.10)	-1.76

MBIA has lower revenue, but higher earnings than Corebridge Financial. MBIA is trading at a lower price-to-earnings ratio than Corebridge Financial, indicating that it is currently the more affordable of the two stocks.

Summary

Corebridge Financial beats MBIA on 9 of the 14 factors compared between the two stocks.

About Corebridge Financial

Corebridge Financial, Inc. provides retirement solutions and insurance products in the United States. The company operates through Individual Retirement, Group Retirement, Life Insurance, and Institutional Markets segments. The Individual Retirement segment provides fixed annuities, fixed index annuities, variable annuities, and retail mutual funds. The Group Retirement segment offers record-keeping services, plan administration and compliance services, and financial planning and advisory solutions to employer-defined contribution plans and their participants, as well as proprietary and non-proprietary annuities, advisory services, and brokerage products. The Life Insurance segment offers term life and universal life insurance in the United States, as well as issues individual life, whole life, and group life insurance in the United Kingdom; and distributes medical insurance in Ireland. The Institutional Markets segment provides stable value wraps, structured settlement and pension risk transfer annuities, corporate and bank owned life insurance, private placement variable universal life and annuities products, and guaranteed investment contracts. The company was formerly known as SAFG Retirement Services, Inc. Corebridge Financial, Inc. was incorporated in 1998 and is headquartered in Houston, Texas. The company operates as a subsidiary of American International Group, Inc.

About MBIA

MBIA Inc. provides financial guarantee insurance services to public finance markets in the United States. It operates United States (U.S.) Public Finance Insurance, and International and Structured Finance Insurance segments. The company issues financial guarantees for municipal bonds, including tax-exempt and taxable indebtedness of the U.S. political subdivisions, as well as utility districts, airports, health care institutions, higher educational facilities, housing authorities, and other similar agencies and obligations issued by private entities. It also insures the non-U.S. public finance and global structured finance, including asset-backed obligations; and sovereign-related and sub-sovereign bonds, and privately issued bonds used for the financing for utilities, toll roads, bridges, public transportation facilities, and other types of infrastructure projects, as well as offers third-party reinsurance services. MBIA Inc. was founded in 1973 and is headquartered in Purchase, New York.