NMI (NASDAQ:NMIH – Get Free Report) and Block (NYSE:XYZ – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.
Institutional & Insider Ownership
94.1% of NMI shares are held by institutional investors. Comparatively, 70.4% of Block shares are held by institutional investors. 2.4% of NMI shares are held by company insiders. Comparatively, 11.4% of Block shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings and target prices for NMI and Block, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NMI | 0 | 2 | 4 | 0 | 2.67 |
| Block | 0 | 8 | 29 | 3 | 2.88 |
Profitability
This table compares NMI and Block’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NMI | 54.10% | 15.13% | 10.21% |
| Block | 1.43% | 8.10% | 4.53% |
Risk & Volatility
NMI has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Block has a beta of 2.53, indicating that its share price is 153% more volatile than the S&P 500.
Earnings and Valuation
This table compares NMI and Block”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NMI | $730.78 million | 4.62 | $388.93 million | $5.08 | 8.83 |
| Block | $25.04 billion | 2.05 | $1.31 billion | $0.56 | 152.47 |
Block has higher revenue and earnings than NMI. NMI is trading at a lower price-to-earnings ratio than Block, indicating that it is currently the more affordable of the two stocks.
Summary
Block beats NMI on 9 of the 15 factors compared between the two stocks.
About NMI
NMI Holdings, Inc. provides private mortgage guaranty insurance services in the United States. The company offers mortgage insurance services, such as primary and pool insurance; and outsourced loan review services to mortgage loan originators. It serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders, and other non-bank lenders. The company was incorporated in 2011 and is headquartered in Emeryville, California.
About Block
Square, Inc. provides payment and point-of-sale solutions in the United States and internationally. The company's commerce ecosystem includes point-of-sale software and hardware that enables sellers to turn mobile and computing devices into payment and point-of-sale solutions. It offers hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts EMV® chip cards and Near Field Communication payments; Chip card reader, which accepts EMV® chip cards and enables swiped transactions of magnetic stripe cards; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; and Square Register that combines its hardware, point-of-sale software, and payments technology, as well as managed payments solutions. The company also provides Square Point of Sale software; Cash App, which provides access to the financial system, allowing customers to electronically send, store, and spend money; Caviar, a food ordering platform for restaurants to offer food ordering, pickup and delivery, to their customers; and Square Capital that facilitates loans to sellers based on real-time payment and point-of-sale data. Square, Inc. was founded in 2009 and is headquartered in San Francisco, California.
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