First American Financial Corporation (FAF) vs NMI Holdings Inc (NMIH)

First American Financial Corporation and NMI Holdings Inc are both Insurance Specialty companies. First American Financial Corporation is the larger, with a market value of $6.7B against $3.1B — 2.1× the size. NMI Holdings Inc trades at the lower P/E: 8.0× against 9.2×. First American Financial Corporation grew revenue faster over the last twelve months: 22.6% against 7.53%. NMI Holdings Inc has the higher net margin (54.1% vs 9.33%) and the lower return on invested capital (10.4% vs 17.0%). Across the 22 metrics below, NMI Holdings Inc leads on 13 and First American Financial Corporation on 9.

Valuation

Metric FAF NMIH Insurance Specialty median
P/E 9.15 7.97 9.15
P/S 0.85 4.28 1.84
P/B 1.20 1.16 1.16
Price to free cash flow 8.16 7.08 8.16
EV/EBITDA 4.07 6.37 7.51
EV/Sales 0.72 4.75 2.17
Earnings yield 10.93% 12.54% 10.79%
Free cash flow yield 12.25% 14.13% 11.79%

Profitability

Metric FAF NMIH Insurance Specialty median
Gross margin 100.00% 89.94% 73.81%
Operating margin 15.52% 73.24% 17.70%
Net margin 9.33% 54.10% 13.80%
Free cash flow margin 10.44% 60.43% 34.47%
Return on equity 13.81% 15.43% 12.01%
Return on assets 4.23% 10.42% 4.12%
Return on invested capital 16.97% 10.38% 8.77%

Growth

Metric FAF NMIH Insurance Specialty median
Revenue growth (TTM) 22.55% 7.53% 7.53%
EPS growth (last fiscal year) 376.19% 11.06% —
Revenue growth, 5-year CAGR 1.01% 10.27% 2.24%
Net income growth, 5-year CAGR (2.23%) 17.78% 0.00%

Health

Metric FAF NMIH Insurance Specialty median
Debt to equity 0.27 0.15 0.15
Current ratio 1.18 0.56 0.53
Net debt to EBITDA 0.13 0.69 0.28

Dividend

Metric FAF NMIH Insurance Specialty median
Dividend yield 3.59% — 2.60%
Payout ratio 0.90 0.00 0.21

Size

Metric FAF NMIH Insurance Specialty median
Market cap 6.70b 3.13b 3.13b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack