Head-To-Head Review: Reinsurance Group of America (NYSE:RGA) versus Stewart Information Services (NYSE:STC)

Reinsurance Group of America (NYSE:RGA) and Stewart Information Services (NYSE:STC) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Institutional & Insider Ownership

95.1% of Reinsurance Group of America shares are owned by institutional investors. Comparatively, 96.9% of Stewart Information Services shares are owned by institutional investors. 0.6% of Reinsurance Group of America shares are owned by company insiders. Comparatively, 2.9% of Stewart Information Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Reinsurance Group of America and Stewart Information Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reinsurance Group of America	0	1	8	1	3.00
Stewart Information Services	1	2	4	0	2.43

Reinsurance Group of America currently has a consensus price target of $270.00, suggesting a potential upside of 2.63%. Stewart Information Services has a consensus price target of $75.75, suggesting a potential upside of 74.27%. Given Stewart Information Services’ higher possible upside, analysts plainly believe Stewart Information Services is more favorable than Reinsurance Group of America.

Profitability

This table compares Reinsurance Group of America and Stewart Information Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reinsurance Group of America	N/A	N/A	N/A
Stewart Information Services	N/A	N/A	N/A

Valuation and Earnings

This table compares Reinsurance Group of America and Stewart Information Services”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reinsurance Group of America	$25.88 billion	0.66	$1.49 billion	$22.77	11.55
Stewart Information Services	N/A	N/A	N/A	$3.99	10.89

Reinsurance Group of America has higher revenue and earnings than Stewart Information Services. Stewart Information Services is trading at a lower price-to-earnings ratio than Reinsurance Group of America, indicating that it is currently the more affordable of the two stocks.

Summary

Reinsurance Group of America beats Stewart Information Services on 5 of the 8 factors compared between the two stocks.

About Reinsurance Group of America

Reinsurance Group of America, Incorporated engages in reinsurance business. The company offers individual and group life and health insurance products, such as term life, credit life, universal life, whole life, group life and health, joint and last survivor insurance, critical illness, disability, and longevity products; asset-intensive and financial reinsurance products; and other capital motivated solutions. It also provides reinsurance for mortality, morbidity, lapse, and investment-related risk associated with products; and reinsurance for investment-related risks. In addition, the company develops and markets technology solutions; and provides consulting and outsourcing solutions for the insurance and reinsurance industries. It operates in the United States, Latin America, Canada, Europe, the Middle East, Africa, and the Asia Pacific. The company was founded in 1973 and is headquartered in Chesterfield, Missouri.

About Stewart Information Services

Stewart Information Services Corporation, through its subsidiaries, provides title insurance and real estate transaction related services in the United States and internationally. The company involves in searching, examining, closing, and insuring the condition of the title to real property. It also offers home and personal insurance services; services for tax-deferred exchanges; and digital customer engagement platform services. It also provides appraisal management, online notarization and closing, credit and real estate information, and search and valuation services. The company serves homebuyers and sellers, residential and commercial real estate professionals, mortgage lenders and servicers, title agencies and real estate attorneys, and home builders through direct operations, network of independent agencies, and other businesses. The company was founded in 1893 and is headquartered in Houston, Texas.