Employers Holdings Inc (EIG) vs Radian Group Inc. (RDN)

Employers Holdings Inc and Radian Group Inc. are both Insurance Specialty companies. Radian Group Inc. is the larger, with a market value of $4.5B against $906.1M — 4.9× the size. Radian Group Inc. trades at the lower P/E: 8.7× against 73.2×. Radian Group Inc. grew revenue faster over the last twelve months: 41.9% against −5.83%. Radian Group Inc. has the higher net margin (32.6% vs 0.91%) and the higher return on invested capital (7.69% vs 0.55%). Both pay a dividend; Radian Group Inc. yields more (3.00% vs 2.58%). Across the 21 metrics below, Radian Group Inc. leads on 17 and Employers Holdings Inc on 4.

Valuation

Metric EIG RDN Insurance Specialty median
P/E 73.16 8.68 8.97
P/S 1.11 2.80 1.87
P/B 1.08 0.96 1.15
Price to free cash flow 47.25 3.31 8.00
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 1.37% 11.52% 10.57%
Free cash flow yield 2.12% 30.18% 12.08%

Profitability

Metric EIG RDN Insurance Specialty median
Gross margin 1.25% 69.22% 73.81%
Operating margin 1.25% 48.72% 17.70%
Net margin 0.91% 32.60% 13.80%
Free cash flow margin 2.35% 84.53% 34.47%
Return on equity 0.78% 11.53% 12.01%
Return on assets 0.22% 5.30% 4.12%
Return on invested capital 0.55% 7.69% 8.77%

Growth

Metric EIG RDN Insurance Specialty median
Revenue growth (TTM) (5.83%) 41.92% 7.53%
EPS growth (last fiscal year) (90.23%) 5.61% 5.61%
Revenue growth, 5-year CAGR 3.84% (3.61%) 2.24%
Net income growth, 5-year CAGR (38.20%) 8.16% 0.00%

Health

Metric EIG RDN Insurance Specialty median
Debt to equity 0.15 0.26 0.15
Current ratio 0.37 0.39 0.53
Net debt to EBITDA (5.61) 1.20 0.28

Dividend

Metric EIG RDN Insurance Specialty median
Dividend yield 2.58% 3.00% 2.09%
Payout ratio 1.91 0.26 0.20

Size

Metric EIG RDN Insurance Specialty median
Market cap 906.11m 4.45b 3.07b

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