Contrasting Radian Group (RDN) and Its Competitors

Radian Group (NYSE: RDN) is one of 85 publicly-traded companies in the “Property & Casualty Insurance” industry, but how does it compare to its rivals? We will compare Radian Group to related companies based on the strength of its institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Dividends

Radian Group pays an annual dividend of $0.01 per share and has a dividend yield of 0.0%. Radian Group pays out 1.3% of its earnings in the form of a dividend. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.3% and pay out 14.7% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Radian Group and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Radian Group $1.24 billion $308.25 million 28.21
Radian Group Competitors $11.51 billion $1.16 billion 156.45

Radian Group’s rivals have higher revenue and earnings than Radian Group. Radian Group is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and target prices for Radian Group and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Radian Group 0 2 7 0 2.78
Radian Group Competitors 634 2320 2207 48 2.32

Radian Group currently has a consensus target price of $22.72, suggesting a potential upside of 3.27%. As a group, “Property & Casualty Insurance” companies have a potential upside of 0.34%. Given Radian Group’s stronger consensus rating and higher possible upside, research analysts plainly believe Radian Group is more favorable than its rivals.

Insider & Institutional Ownership

91.6% of Radian Group shares are held by institutional investors. Comparatively, 60.2% of shares of all “Property & Casualty Insurance” companies are held by institutional investors. 1.1% of Radian Group shares are held by company insiders. Comparatively, 15.6% of shares of all “Property & Casualty Insurance” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Radian Group has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, Radian Group’s rivals have a beta of 0.91, meaning that their average share price is 9% less volatile than the S&P 500.

Profitability

This table compares Radian Group and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Radian Group 14.88% 12.99% 6.51%
Radian Group Competitors 6.06% 1.61% 1.23%

Summary

Radian Group beats its rivals on 9 of the 15 factors compared.

About Radian Group

Radian Group Inc. is an insurance holding company that provides mortgage insurance, and products and services to the real estate and mortgage finance industries. The Company operates in two segments: Mortgage Insurance and Services. The Mortgage Insurance segment provides credit-related insurance coverage, principally through private mortgage insurance to mortgage lending institutions. The Services segment provides outsourced services, information-based analytics valuations and specialty consulting and surveillance services for buyers and sellers of, and investors in, mortgage- and real estate-related loans and securities, as well as other asset-backed securities (ABS). It also offers mortgage insurance products, such as primary mortgage insurance and pool insurance. Its Services segment is engaged in offering businesses, such as loan review and due diligence, and surveillance, including residential mortgage-backed securities (RMBS) surveillance and loan servicer oversight.

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