Radian Group (NYSE: RDN) is one of 92 publicly-traded companies in the “Property & Casualty Insurance” industry, but how does it contrast to its peers? We will compare Radian Group to similar businesses based on the strength of its profitability, institutional ownership, analyst recommendations, valuation, risk, dividends and earnings.

Risk and Volatility

Radian Group has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Radian Group’s peers have a beta of 0.93, meaning that their average stock price is 7% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Radian Group 16.26% 12.81% 6.31%
Radian Group Competitors 10.08% 5.28% 2.71%

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Radian Group $1.19 billion $676.01 million 23.36
Radian Group Competitors $11.75 billion $2.00 billion 36.24

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Radian Group and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Radian Group 0 1 6 0 2.86
Radian Group Competitors 617 2256 2149 42 2.32

Radian Group currently has a consensus target price of $22.04, indicating a potential upside of 10.96%. As a group, “Property & Casualty Insurance” companies have a potential downside of 1.57%. Given Radian Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Radian Group is more favorable than its peers.

Institutional and Insider Ownership

90.0% of Radian Group shares are owned by institutional investors. Comparatively, 60.7% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 1.1% of Radian Group shares are owned by insiders. Comparatively, 15.5% of shares of all “Property & Casualty Insurance” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Radian Group pays an annual dividend of $0.01 per share and has a dividend yield of 0.1%. Radian Group pays out 1.2% of its earnings in the form of a dividend. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.4% and pay out 27.2% of their earnings in the form of a dividend.

Summary

Radian Group beats its peers 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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