Axis Capital (NYSE:AXS) and NMI (NASDAQ:NMIH) Head-To-Head Review

Axis Capital (NYSE:AXS) and NMI (NASDAQ:NMIH) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.

Insider & Institutional Ownership

93.4% of Axis Capital shares are held by institutional investors. Comparatively, 94.1% of NMI shares are held by institutional investors. 0.6% of Axis Capital shares are held by insiders. Comparatively, 2.4% of NMI shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Axis Capital has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, NMI has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.

Profitability

This table compares Axis Capital and NMI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Axis Capital	16.00%	18.12%	3.02%
NMI	53.82%	15.18%	10.23%

Earnings & Valuation

This table compares Axis Capital and NMI”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axis Capital	$6.56 billion	1.07	$1.01 billion	$13.42	7.07
NMI	$706.44 million	3.86	$388.93 million	$4.91	7.31

Axis Capital has higher revenue and earnings than NMI. Axis Capital is trading at a lower price-to-earnings ratio than NMI, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for Axis Capital and NMI, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axis Capital	0	2	8	0	2.80
NMI	0	1	4	0	2.80

Axis Capital presently has a consensus price target of $122.10, indicating a potential upside of 28.71%. NMI has a consensus price target of $44.80, indicating a potential upside of 24.79%. Given Axis Capital’s higher possible upside, equities research analysts clearly believe Axis Capital is more favorable than NMI.

Summary

NMI beats Axis Capital on 7 of the 13 factors compared between the two stocks.

About Axis Capital

AXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products in Bermuda, the United States, and internationally. It operates through two segments, Insurance and Reinsurance. The Insurance segment offers professional insurance products that cover directors' and officers' liability, errors and omissions, employment practices, fiduciary, crime, professional indemnity, medical malpractice, and other financial insurance related coverages for commercial enterprises, financial institutions, not-for-profit organizations, and other professional service providers; and property insurance products for commercial buildings, residential premises, construction projects, property in transit, onshore renewable energy installations, and physical damage and business interruption following an act of terrorism. This segment also provides marine and aviation insurance services for offshore energy, renewable offshore energy, cargo, liability, including kidnap and ransom, fine art, specie, and hull war, hull and liability, and specific war coverage for passenger airlines, cargo operations, general aviation operations, airports, aviation authorities, security firms, and product manufacturers; personal accident, travel insurance, specialty health products for employer and affinity groups, and pet insurance products; and liability, cyber, and credit and political risk insurance services. The Reinsurance segment offers agriculture, marine and aviation, catastrophe, accidental and health, credit and surety, motor, professional, travel, life, engineering, property, and liability reinsurance products. AXIS Capital Holdings Limited was founded in 2001 and is headquartered in Pembroke, Bermuda.

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.