RDN vs. MTG, AGO, ESNT, NMIH, ORI, HOMB, JXN, ONB, FNB, and COOP
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), Jackson Financial (JXN), Old National Bancorp (ONB), F.N.B. (FNB), and Mr. Cooper Group (COOP). These companies are all part of the "finance" sector.
MGIC Investment (NYSE:MTG) and Radian Group (NYSE:RDN) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, media sentiment, earnings, analyst recommendations, community ranking, valuation and profitability.
MGIC Investment has higher earnings, but lower revenue 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.
93.4% of MGIC Investment shares are owned by institutional investors. Comparatively, 96.2% of Radian Group shares are owned by institutional investors. 1.1% of MGIC Investment shares are owned by company insiders. Comparatively, 1.6% of Radian Group shares are owned by company 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.
MGIC Investment received 12 more outperform votes than Radian Group when rated by MarketBeat users. Likewise, 67.37% of users gave MGIC Investment an outperform vote while only 65.32% of users gave Radian Group an outperform vote.
MGIC Investment has a net margin of 61.72% compared to MGIC Investment's net margin of 48.51%. Radian Group's return on equity of 14.82% beat MGIC Investment's return on equity.
In the previous week, Radian Group had 3 more articles in the media than MGIC Investment. MarketBeat recorded 10 mentions for Radian Group and 7 mentions for MGIC Investment. Radian Group's average media sentiment score of 0.87 beat MGIC Investment's score of 0.45 indicating that MGIC Investment is being referred to more favorably in the media.
MGIC Investment pays an annual dividend of $0.46 per share and has a dividend yield of 2.2%. Radian Group pays an annual dividend of $0.98 per share and has a dividend yield of 3.2%. MGIC Investment pays out 18.5% of its earnings in the form of a dividend. Radian Group pays out 25.9% 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. MGIC Investment has increased its dividend for 3 consecutive years and Radian Group has increased its dividend for 5 consecutive years. Radian Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
MGIC Investment has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Radian Group has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.
MGIC Investment currently has a consensus price target of $20.50, suggesting a potential downside of 0.49%. Radian Group has a consensus price target of $28.60, suggesting a potential downside of 7.38%. Given Radian Group's stronger consensus rating and higher probable upside, research analysts clearly believe MGIC Investment is more favorable than Radian Group.
Summary
MGIC Investment beats Radian Group on 13 of the 20 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.
Skip ChartThis 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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