MGIC Investment (NYSE:MTG) and New York Community Bancorp (NYSE:NYCB) are both mid-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
Risk and Volatility
MGIC Investment has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500. Comparatively, New York Community Bancorp has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.
Profitability
This table compares MGIC Investment and New York Community Bancorp's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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MGIC Investment | 39.04% | 11.08% | 7.40% |
New York Community Bancorp | 23.07% | 6.69% | 0.76% |
Insider and Institutional Ownership
89.9% of MGIC Investment shares are owned by institutional investors. Comparatively, 50.8% of New York Community Bancorp shares are owned by institutional investors. 0.6% of MGIC Investment shares are owned by insiders. Comparatively, 3.3% of New York Community Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Dividends
MGIC Investment pays an annual dividend of $0.24 per share and has a dividend yield of 2.0%. New York Community Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 5.6%. MGIC Investment pays out 13.0% of its earnings in the form of a dividend. New York Community Bancorp pays out 88.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MGIC Investment has increased its dividend for 1 consecutive years and New York Community Bancorp has increased its dividend for 1 consecutive years.
Valuation and Earnings
This table compares MGIC Investment and New York Community Bancorp's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
MGIC Investment | $1.21 billion | 3.40 | $673.76 million | $1.84 | 6.62 |
New York Community Bancorp | $1.89 billion | 3.00 | $395.04 million | $0.77 | 15.86 |
MGIC Investment has higher earnings, but lower revenue than New York Community Bancorp. MGIC Investment is trading at a lower price-to-earnings ratio than New York Community Bancorp, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and recommmendations for MGIC Investment and New York Community Bancorp, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
MGIC Investment | 0 | 1 | 7 | 0 | 2.88 |
New York Community Bancorp | 0 | 6 | 6 | 0 | 2.50 |
MGIC Investment presently has a consensus price target of $13.2188, indicating a potential upside of 8.53%. New York Community Bancorp has a consensus price target of $11.9167, indicating a potential downside of 2.40%. Given MGIC Investment's stronger consensus rating and higher possible upside, research analysts clearly believe MGIC Investment is more favorable than New York Community Bancorp.
Summary
MGIC Investment beats New York Community Bancorp on 12 of the 16 factors compared between the two stocks.