Head-To-Head Contrast: Greenlight Capital Re (GLRE) versus Tiptree (TIPT)

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Greenlight Capital Re (NASDAQ:GLRE) and Tiptree (NASDAQ:TIPT) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Insider & Institutional Ownership

43.2% of Greenlight Capital Re shares are owned by institutional investors. Comparatively, 64.1% of Tiptree shares are owned by institutional investors. 21.4% of Greenlight Capital Re shares are owned by company insiders. Comparatively, 23.7% of Tiptree shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Greenlight Capital Re has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Tiptree has a beta of -0.26, indicating that its share price is 126% less volatile than the S&P 500.

Profitability

This table compares Greenlight Capital Re and Tiptree’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Greenlight Capital Re -44.10% -25.61% -6.50%
Tiptree 5.08% -4.57% -0.93%

Valuation & Earnings

This table compares Greenlight Capital Re and Tiptree’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Greenlight Capital Re $645.67 million 0.68 -$44.95 million ($1.21) -9.61
Tiptree $581.80 million 0.39 $4.48 million N/A N/A

Tiptree has lower revenue, but higher earnings than Greenlight Capital Re.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Greenlight Capital Re and Tiptree, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Greenlight Capital Re 0 0 1 0 3.00
Tiptree 0 0 0 0 N/A

Greenlight Capital Re currently has a consensus target price of $25.00, indicating a potential upside of 114.96%. Given Greenlight Capital Re’s higher probable upside, analysts clearly believe Greenlight Capital Re is more favorable than Tiptree.

Dividends

Tiptree pays an annual dividend of $0.14 per share and has a dividend yield of 2.3%. Greenlight Capital Re does not pay a dividend.

Summary

Tiptree beats Greenlight Capital Re on 7 of the 12 factors compared between the two stocks.

Greenlight Capital Re Company Profile

Greenlight Capital Re, Ltd., through its subsidiaries, engages in the provision of property and casualty reinsurance products and services worldwide. Its frequency business comprises contracts containing small losses emanating from multiple events and enables the clients to increase their underwriting capacity; and severity business includes contracts with the potential for significant losses emanating from one event or various events. The company offers various property reinsurance products and services that include commercial, motor, and personal; casualty reinsurance products and services, which include general liability, motor, professional, and worker's compensation; and specialty reinsurance products and services that include accident and health, financial, marine, and other products. It markets its products through reinsurance brokers. The company was founded in 2004 and is headquartered in Grand Cayman, the Cayman Islands.

Tiptree Company Profile

Tiptree Inc., through its subsidiaries, underwrites and administers specialty insurance products primarily in the United States. It operates through three segments: Specialty Insurance, Asset Management, and Mortgage. The company provides credit protection insurance, warranty and service contract products, and insurance programs that underwrite niche personal and commercial lines of insurance, as well as offers value-add services, including premium finance and business processing services. It also engages in asset management operations; the provision of mortgage loans for institutional investors; and other investment activities. Tiptree Inc. markets its products through a network of independent insurance brokers and managing general agencies. The company was formerly known as Tiptree Financial Inc. and changed its name to Tiptree Inc. in December 2016. Tiptree Inc. was incorporated in 2007 and is based in New York, New York.

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