RDN vs. MTG, AGO, ESNT, NMIH, ORI, HOMB, WTM, ONB, UBSI, and AEL
Should you be buying Radian Group stock or one of its competitors? The main competitors of Radian Group include MGIC Investment (MTG), Assured Guaranty (AGO), Essent Group (ESNT), NMI (NMIH), Old Republic International (ORI), Home Bancshares, Inc. (Conway, AR) (HOMB), White Mountains Insurance Group (WTM), Old National Bancorp (ONB), United Bankshares (UBSI), and American Equity Investment Life (AEL). These companies are all part of the "finance" sector.
Radian Group (NYSE:RDN) and MGIC Investment (NYSE:MTG) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their media sentiment, community ranking, risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.
95.3% of Radian Group shares are held by institutional investors. Comparatively, 95.6% of MGIC Investment shares are held by institutional investors. 2.2% of Radian Group shares are held by insiders. Comparatively, 1.6% of MGIC Investment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
MGIC Investment received 12 more outperform votes than Radian Group when rated by MarketBeat users. Likewise, 67.27% of users gave MGIC Investment an outperform vote while only 65.23% of users gave Radian Group an outperform vote.
MGIC Investment has lower revenue, but higher earnings than Radian Group. Radian Group is trading at a lower price-to-earnings ratio than MGIC Investment, indicating that it is currently the more affordable of the two stocks.
MGIC Investment has a net margin of 61.72% compared to Radian Group's net margin of 48.51%. MGIC Investment's return on equity of 14.82% beat Radian Group's return on equity.
In the previous week, Radian Group and Radian Group both had 5 articles in the media. Radian Group's average media sentiment score of 1.74 beat MGIC Investment's score of 1.46 indicating that Radian Group is being referred to more favorably in the media.
Radian Group pays an annual dividend of $0.98 per share and has a dividend yield of 3.2%. MGIC Investment pays an annual dividend of $0.46 per share and has a dividend yield of 2.3%. Radian Group pays out 25.9% of its earnings in the form of a dividend. MGIC Investment pays out 18.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Radian Group currently has a consensus target price of $30.00, suggesting a potential downside of 1.96%. MGIC Investment has a consensus target price of $21.08, suggesting a potential upside of 3.65%. Given MGIC Investment's stronger consensus rating and higher probable upside, analysts clearly believe MGIC Investment is more favorable than Radian Group.
Radian Group has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, MGIC Investment has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.
Summary
MGIC Investment beats Radian Group on 14 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding RDN and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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