Assured Guaranty Ltd. (AGO) vs NMI Holdings Inc (NMIH)

Assured Guaranty Ltd. and NMI Holdings Inc are both Insurance Specialty companies. Assured Guaranty Ltd. and NMI Holdings Inc are of similar size ($3.1B and $3.0B). NMI Holdings Inc trades at the lower P/E: 8.0× against 9.3×. NMI Holdings Inc grew revenue faster over the last twelve months: 7.53% against −10.6%. NMI Holdings Inc has the higher net margin (54.1% vs 37.3%) and the higher return on invested capital (10.4% vs 3.91%). Across the 22 metrics below, NMI Holdings Inc leads on 18 and Assured Guaranty Ltd. on 4.

Valuation

Metric AGO NMIH Insurance Specialty median
P/E 9.27 7.97 9.15
P/S 3.27 4.28 1.84
P/B 0.55 1.16 1.16
Price to free cash flow 9.50 7.08 8.16
EV/EBITDA 10.26 6.37 7.51
EV/Sales 4.76 4.75 2.17
Earnings yield 10.79% 12.54% 10.79%
Free cash flow yield 10.52% 14.13% 11.79%

Profitability

Metric AGO NMIH Insurance Specialty median
Gross margin 99.04% 89.94% 73.81%
Operating margin 46.38% 73.24% 17.70%
Net margin 37.34% 54.10% 13.80%
Free cash flow margin 34.47% 60.43% 34.47%
Return on equity 6.21% 15.43% 12.01%
Return on assets 2.84% 10.42% 4.12%
Return on invested capital 3.91% 10.38% 8.77%

Growth

Metric AGO NMIH Insurance Specialty median
Revenue growth (TTM) (10.56%) 7.53% 7.53%
EPS growth (last fiscal year) 49.34% 11.06% —
Revenue growth, 5-year CAGR (0.09%) 10.27% 2.24%
Net income growth, 5-year CAGR 6.80% 17.78% 0.00%

Health

Metric AGO NMIH Insurance Specialty median
Debt to equity 0.31 0.15 0.15
Current ratio 0.42 0.56 0.53
Net debt to EBITDA 2.24 0.69 0.28

Dividend

Metric AGO NMIH Insurance Specialty median
Dividend yield 1.36% — 2.60%
Payout ratio 0.21 0.00 0.21

Size

Metric AGO NMIH Insurance Specialty median
Market cap 3.01b 3.13b 3.13b

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