Radian Group (NYSE:RDN) and New York Community Bancorp (NYSE:NYCB) are both mid-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.
Profitability
This table compares Radian Group and New York Community Bancorp's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Radian Group | 43.01% | 17.32% | 10.11% |
| New York Community Bancorp | 20.76% | 6.31% | 0.73% |
Analyst Recommendations
This is a summary of recent ratings and target prices for Radian Group and New York Community Bancorp, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Radian Group | 0 | 1 | 5 | 0 | 2.83 |
| New York Community Bancorp | 1 | 5 | 5 | 0 | 2.36 |
Radian Group currently has a consensus target price of $23.8333, suggesting a potential upside of 58.57%. New York Community Bancorp has a consensus target price of $12.00, suggesting a potential upside of 22.57%. Given Radian Group's stronger consensus rating and higher possible upside, analysts clearly believe Radian Group is more favorable than New York Community Bancorp.
Earnings & Valuation
This table compares Radian Group and New York Community Bancorp's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Radian Group | $1.53 billion | 1.87 | $672.31 million | $3.21 | 4.68 |
| New York Community Bancorp | $1.89 billion | 2.40 | $395.04 million | $0.77 | 12.71 |
Radian Group has higher earnings, but lower revenue than New York Community Bancorp. Radian Group 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.
Insider & Institutional Ownership
94.7% of Radian Group shares are owned by institutional investors. Comparatively, 62.0% of New York Community Bancorp shares are owned by institutional investors. 1.2% of Radian Group 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, endowments and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Radian Group has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500. Comparatively, New York Community Bancorp has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.
Dividends
Radian Group pays an annual dividend of $0.50 per share and has a dividend yield of 3.3%. New York Community Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 6.9%. Radian Group pays out 15.6% 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.
Summary
Radian Group beats New York Community Bancorp on 10 of the 15 factors compared between the two stocks.
