First American Financial Corporation (FAF) vs Radian Group Inc. (RDN)
First American Financial Corporation and Radian Group Inc. are both Insurance Specialty companies. First American Financial Corporation is the larger, with a market value of $6.7B against $4.4B — 1.5× the size. Radian Group Inc. trades at the lower P/E: 8.4× against 9.2×. Radian Group Inc. grew revenue faster over the last twelve months: 41.9% against 22.6%. Radian Group Inc. has the higher net margin (32.6% vs 9.33%) and the lower return on invested capital (7.69% vs 17.0%). Both pay a dividend; First American Financial Corporation yields more (3.59% vs 3.44%). Across the 23 metrics below, Radian Group Inc. leads on 12 and First American Financial Corporation on 11.
Valuation
Profitability
| Metric | FAF | RDN | Insurance Specialty median |
|---|---|---|---|
| Gross margin | 100.00% | 69.22% | 73.81% |
| Operating margin | 15.52% | 48.72% | 17.70% |
| Net margin | 9.33% | 32.60% | 13.80% |
| Free cash flow margin | 10.44% | 84.53% | 34.47% |
| Return on equity | 13.81% | 11.53% | 12.01% |
| Return on assets | 4.23% | 5.30% | 4.12% |
| Return on invested capital | 16.97% | 7.69% | 8.77% |
Growth
Health
Dividend
Size
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