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Brookfield Reinsurance (NYSE:BNRE) & MediaAlpha (NYSE:MAX) Critical Analysis

Defense World ·  Jan 31, 2023 01:13

Brookfield Reinsurance (NYSE:BNRE – Get Rating) and MediaAlpha (NYSE:MAX – Get Rating) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Profitability

This table compares Brookfield Reinsurance and MediaAlpha's net margins, return on equity and return on assets.

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Net Margins Return on Equity Return on Assets
Brookfield Reinsurance 1.00% 7.25% 0.33%
MediaAlpha -6.55% N/A -11.66%

Volatility and Risk

Brookfield Reinsurance has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, MediaAlpha has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Valuation and Earnings

This table compares Brookfield Reinsurance and MediaAlpha's gross revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brookfield Reinsurance $7.35 billion 0.05 -$44.00 million N/A N/A
MediaAlpha $645.27 million 1.27 -$5.28 million ($0.83) -15.82

MediaAlpha has lower revenue, but higher earnings than Brookfield Reinsurance.

Analyst Ratings

This is a summary of current recommendations and price targets for Brookfield Reinsurance and MediaAlpha, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookfield Reinsurance 0 0 0 0 N/A
MediaAlpha 0 2 3 0 2.60

MediaAlpha has a consensus target price of $13.80, suggesting a potential upside of 5.10%. Given MediaAlpha's higher probable upside, analysts clearly believe MediaAlpha is more favorable than Brookfield Reinsurance.

Institutional & Insider Ownership

39.7% of Brookfield Reinsurance shares are held by institutional investors. Comparatively, 70.1% of MediaAlpha shares are held by institutional investors. 1.0% of Brookfield Reinsurance shares are held by insiders. Comparatively, 9.6% of MediaAlpha shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

MediaAlpha beats Brookfield Reinsurance on 6 of the 11 factors compared between the two stocks.

About Brookfield Reinsurance

(Get Rating)

Brookfield Asset Management Reinsurance Partners Ltd., through its subsidiaries, provides annuity-based reinsurance products to insurance and reinsurance companies. The company operates in two segments, Reinsurance and Pension Risk Transfer. It also acts as a direct issuer of pension risk transfer products for pension plan sponsors. The company was incorporated in 2020 and is headquartered in Pembroke, Bermuda.

About MediaAlpha

(Get Rating)

MediaAlpha, Inc., through its subsidiaries, operates an insurance customer acquisition platform in the United States. It optimizes customer acquisition in various verticals of property and casualty insurance, health insurance, and life insurance. The company was founded in 2014 and is headquartered in Los Angeles, California.

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Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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