Head to Head Review: NMI Holdings (NASDAQ:NMIH) & Fidelity National Financial (FNFV)
NMI Holdings (NASDAQ: NMIH) and Fidelity National Financial (NYSE:FNFV) are both small-cap financials companies, but which is the superior business? We will contrast the two companies based on the strength of their profitabiliy, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.
Insider & Institutional Ownership
81.0% of NMI Holdings shares are held by institutional investors. Comparatively, 85.0% of Fidelity National Financial shares are held by institutional investors. 5.4% of NMI Holdings shares are held by company insiders. Comparatively, 5.4% of Fidelity National Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
NMI Holdings has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, Fidelity National Financial has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.
This table compares NMI Holdings and Fidelity National Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fidelity National Financial||6.75%||1.73%||0.83%|
Earnings & Valuation
This table compares NMI Holdings and Fidelity National Financial’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|NMI Holdings||$151.40 million||4.74||$53.06 million||$1.30||9.23|
|Fidelity National Financial||$1.59 billion||0.70||$303.00 million||$1.59||10.82|
Fidelity National Financial has higher revenue and earnings than NMI Holdings. NMI Holdings is trading at a lower price-to-earnings ratio than Fidelity National Financial, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for NMI Holdings and Fidelity National Financial, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fidelity National Financial||0||1||0||0||2.00|
NMI Holdings currently has a consensus price target of $13.25, suggesting a potential upside of 10.42%. Fidelity National Financial has a consensus price target of $16.00, suggesting a potential downside of 6.98%. Given NMI Holdings’ stronger consensus rating and higher probable upside, equities research analysts plainly believe NMI Holdings is more favorable than Fidelity National Financial.
NMI Holdings beats Fidelity National Financial on 7 of the 13 factors compared between the two stocks.
About NMI Holdings
NMI Holdings, Inc. (NMIH) provides private mortgage guaranty insurance through its insurance subsidiaries. The Company’s primary insurance subsidiary, National Mortgage Insurance Corporation (NMIC), is a mortgage insurance (MI) provider on loans purchased by the Government-sponsored enterprises (GSEs). Its reinsurance subsidiary, National Mortgage Reinsurance Inc One (Re One), provides reinsurance to NMIC on certain loans insured by NMIC. NMIH’s subsidiary, NMI Services, Inc. (NMIS), provides outsourced loan review services to mortgage loan originators. Its Primary mortgage insurance provides mortgage default protection on individual loans at specified coverage percentages. Primary insurance may be written on a flow basis, in which loans are insured as loan originations occur in individual, loan-by-loan transactions, or an aggregated basis, in which each loan in a portfolio of loans is individually insured in a single transaction, typically after the loans have been originated.
About Fidelity National Financial
Fidelity National Financial, Inc. (FNF) is a holding company. The Company is a provider of title insurance, technology and transaction services to the real estate and mortgage industries. The Company’s segments include Title, Black Knight, FNF Core Corporate and Other, Restaurant Group, and FNFV Corporate and Other. Its business is organized into groups, including FNF Group and FNF Ventures (FNFV). The Company offers title insurance through its title insurance underwriters: Fidelity National Title Insurance Company, Chicago Title Insurance Company, Commonwealth Land Title Insurance Company, Alamo Title Insurance and National Title Insurance of New York Inc., which collectively issue title insurance policies. FNF Group also provides mortgage technology solutions, including MSP, a residential mortgage servicing technology platform in the United States, through its subsidiary, Black Knight Financial Services, Inc. (Black Knight).
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