Radian Group (NYSE:RDN) versus Fidelity National Information Services (NYSE:FIS) Head to Head Comparison

Fidelity National Information Services (NYSE:FIS) and Radian Group (NYSE:RDN) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.

Earnings and Valuation

This table compares Fidelity National Information Services and Radian Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelity National Information Services	$10.68 billion	1.63	$382.00 million	$6.51	5.19
Radian Group	$1.20 billion	3.72	$582.64 million	$3.89	8.66

Radian Group has lower revenue, but higher earnings than Fidelity National Information Services. Fidelity National Information Services is trading at a lower price-to-earnings ratio than Radian Group, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Fidelity National Information Services has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Radian Group has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Dividends

Fidelity National Information Services pays an annual dividend of $1.76 per share and has a dividend yield of 5.2%. Radian Group pays an annual dividend of $1.02 per share and has a dividend yield of 3.0%. Fidelity National Information Services pays out 27.0% of its earnings in the form of a dividend. Radian Group pays out 26.2% 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. Fidelity National Information Services has raised its dividend for 1 consecutive years and Radian Group has raised its dividend for 6 consecutive years.

Institutional & Insider Ownership

96.2% of Fidelity National Information Services shares are held by institutional investors. Comparatively, 95.3% of Radian Group shares are held by institutional investors. 0.3% of Fidelity National Information Services shares are held by company insiders. Comparatively, 2.0% of Radian Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Fidelity National Information Services and Radian Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelity National Information Services	2	13	10	0	2.32
Radian Group	1	2	6	0	2.56

Fidelity National Information Services presently has a consensus target price of $52.72, indicating a potential upside of 56.12%. Radian Group has a consensus target price of $43.14, indicating a potential upside of 28.12%. Given Fidelity National Information Services’ higher possible upside, analysts plainly believe Fidelity National Information Services is more favorable than Radian Group.

Profitability

This table compares Fidelity National Information Services and Radian Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fidelity National Information Services	27.64%	20.95%	8.13%
Radian Group	32.60%	13.65%	6.91%

Summary

Fidelity National Information Services beats Radian Group on 9 of the 17 factors compared between the two stocks.

About Fidelity National Information Services

Fidelity National Information Services, Inc. engages in the provision of financial services technology solutions for financial institutions, businesses, and developers worldwide. It operates through Banking Solutions, Capital Market Solutions, and Corporate and Other segments. The company provides core processing and ancillary applications; mobile and online banking; fraud, risk management, and compliance; card and retail payment; electronic funds transfer and network; wealth and retirement; and item processing and output solutions. It also offers trading and asset, lending, leveraged and syndicated loan markets, and treasury and risk solutions. The company was founded in 1968 and is headquartered in Jacksonville, Florida.

About Radian Group

Radian Group Inc., together with its subsidiaries, engages in the mortgage and real estate services business in the United States. It operates through two segments, Mortgage Insurance and Homegenius segments. The Mortgage Insurance segment aggregates, manages, and distributes U.S. mortgage credit risk for mortgage lending institutions and mortgage credit investors, through private mortgage insurance on residential first-lien mortgage loans; and other credit risk management solutions, including contract underwriting. The Homegenius segment offers title services, including a suite of insurance and non-insurance titles; tax and title data, centralized recording, document retrieval, and default curative title services; deed and property reports; closing and settlement services; mortgage underwriting and processing; escrow; appraisal management; and real estate brokerage. This segment also provides real estate valuation products and services; asset management services for managing real estate owned properties, which includes a web-based workflow solution; and a suite of real estate technology products and services to facilitate real estate transactions, such as proprietary platforms as a service solution. It serves mortgage originators, such as mortgage bankers, commercial banks, savings institutions, credit unions, and community banks; and consumers, mortgage lenders, mortgage and real estate investors, government-sponsored enterprises, real estate brokers and agents, and corporations for their employees. The company was formerly known as CMAC Investment Corp. and changed its name to Radian Group Inc. in June 1999. Radian Group Inc. was founded in 1977 and is headquartered in Wayne, Pennsylvania.