Head to Head Review: Radian Group (RDN) versus Its Peers
Radian Group (NYSE: RDN) is one of 92 public companies in the “Property & Casualty Insurance” industry, but how does it compare to its peers? We will compare Radian Group to related businesses based on the strength of its risk, dividends, institutional ownership, valuation, profitability, analyst recommendations and earnings.
Valuation and Earnings
This table compares Radian Group and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Radian Group||$1.19 billion||$676.01 million||26.87|
|Radian Group Competitors||$11.75 billion||$2.00 billion||39.63|
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.
Insider and Institutional Ownership
90.4% of Radian Group shares are owned by institutional investors. Comparatively, 60.8% 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, endowments and hedge funds believe a company is poised for long-term growth.
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 1.4% and pay out 28.3% of their earnings in the form of a dividend.
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 Competitors||9.50%||4.83%||2.59%|
This is a breakdown of current ratings and target prices for Radian Group and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Radian Group Competitors||622||2274||2168||45||2.32|
Radian Group presently has a consensus target price of $22.82, indicating a potential upside of 8.88%. As a group, “Property & Casualty Insurance” companies have a potential downside of 0.31%. Given Radian Group’s stronger consensus rating and higher possible upside, analysts plainly believe Radian Group is more favorable than its peers.
Risk and Volatility
Radian Group has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, Radian Group’s peers have a beta of 0.93, indicating that their average share price is 7% less volatile than the S&P 500.
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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