Analyzing Navigators Group (NAVG) and Radian Group (RDN)
Navigators Group (NASDAQ: NAVG) and Radian Group (NYSE:RDN) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.
This table compares Navigators Group and Radian Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Navigators Group pays an annual dividend of $0.24 per share and has a dividend yield of 0.5%. Radian Group pays an annual dividend of $0.01 per share and has a dividend yield of 0.0%. Navigators Group pays out 20.9% of its earnings in the form of a dividend. Radian Group pays out 1.3% 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.
Valuation & Earnings
This table compares Navigators Group 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|
|Navigators Group||$1.20 billion||1.20||$82.72 million||$1.15||42.52|
|Radian Group||$1.24 billion||3.90||$308.25 million||$0.79||28.37|
Radian Group has higher revenue and earnings than Navigators Group. Radian Group is trading at a lower price-to-earnings ratio than Navigators Group, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Navigators Group has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Radian Group has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Navigators Group and Radian Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Navigators Group presently has a consensus target price of $51.50, indicating a potential upside of 5.32%. Radian Group has a consensus target price of $23.88, indicating a potential upside of 6.54%. Given Radian Group’s stronger consensus rating and higher possible upside, analysts clearly believe Radian Group is more favorable than Navigators Group.
Institutional and Insider Ownership
74.0% of Navigators Group shares are held by institutional investors. Comparatively, 91.4% of Radian Group shares are held by institutional investors. 24.1% of Navigators Group shares are held by insiders. Comparatively, 1.1% of Radian Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Radian Group beats Navigators Group on 12 of the 16 factors compared between the two stocks.
Navigators Group Company Profile
The Navigators Group, Inc. is an insurance holding company. The Company is an international insurance company focused on marine insurance. The Company’s segments include U.S. Insurance, International Insurance (Int’l Insurance), Global Reinsurance (GlobalRe) and Corporate. The Company’s Property and Casualty (P&C) insurance business primarily offers general liability coverage, and umbrella and excess liability coverage to commercial enterprises through its U.S. Insurance and Int’l Insurance segments. It also offers reinsurance products through its GlobalRe segment. It distributes its products through international, national and regional, retail and wholesale insurance brokers. The Company’s U.S. Insurance and Int’l Insurance segments consists of three segments, such as Marine, Property and Casualty (P&C) and Professional Liability. Its GlobalRe products include accident & health (A&H), marine, P&C and professional liability.
Radian Group Company Profile
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.
Receive News & Ratings for Navigators Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Navigators Group and related companies with MarketBeat.com's FREE daily email newsletter.