Reviewing Radian Group (RDN) & Its Rivals
Radian Group (NYSE: RDN) is one of 86 publicly-traded companies in the “Property & Casualty Insurance” industry, but how does it compare to its competitors? We will compare Radian Group to similar businesses based on the strength of its valuation, dividends, risk, analyst recommendations, earnings, profitability and institutional ownership.
Institutional & Insider Ownership
91.3% of Radian Group shares are held by institutional investors. Comparatively, 59.4% 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.
Risk & Volatility
Radian Group has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500. Comparatively, Radian Group’s competitors have a beta of 0.92, meaning that their average stock price is 8% less volatile than the S&P 500.
Earnings & Valuation
This table compares Radian Group and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Radian Group||$1.24 billion||$308.25 million||26.59|
|Radian Group Competitors||$11.51 billion||$1.16 billion||142.77|
Radian Group’s competitors have higher revenue and earnings than Radian Group. Radian Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This table compares Radian Group and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Radian Group Competitors||6.25%||1.82%||1.34%|
This is a breakdown of recent ratings for Radian Group and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Radian Group Competitors||633||2330||2191||45||2.32|
Radian Group currently has a consensus price target of $22.82, indicating a potential upside of 8.62%. As a group, “Property & Casualty Insurance” companies have a potential upside of 8.26%. Given Radian Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Radian Group is more favorable than its competitors.
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 22.6% of their earnings in the form of a dividend.
Radian Group beats its competitors 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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