Financial Review: Radian Group (RDN) vs. Its Rivals

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

Insider & Institutional 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 company insiders. Comparatively, 15.6% of shares of all “Property & Casualty Insurance” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company 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 0.0%. 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Radian Group and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Radian Group 0 0 7 0 3.00
Radian Group Competitors 622 2271 2162 43 2.32

Radian Group currently has a consensus target price of $22.82, indicating a potential upside of 7.70%. As a group, “Property & Casualty Insurance” companies have a potential downside of 0.69%. Given Radian Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe Radian Group is more favorable than its peers.

Valuation and Earnings

This table compares Radian Group and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Radian Group $1.19 billion $676.01 million 27.17
Radian Group Competitors $11.75 billion $2.00 billion 39.69

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.

Volatility & Risk

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.

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 14.88% 13.09% 6.51%
Radian Group Competitors 9.73% 5.08% 2.66%

Summary

Radian Group beats its peers on 9 of the 15 factors compared.

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.

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