Fidelity National Financial, Inc. (FNF) vs Radian Group Inc. (RDN)

Fidelity National Financial, Inc. and Radian Group Inc. are both Insurance Specialty companies. Fidelity National Financial, Inc. is the larger, with a market value of $11.0B against $4.4B — 2.5× the size. Radian Group Inc. trades at the lower P/E: 8.4× against 14.6×. Radian Group Inc. grew revenue faster over the last twelve months: 41.9% against 13.0%. Radian Group Inc. has the higher net margin (32.6% vs 5.03%) and the lower return on invested capital (7.69% vs 11.3%). Both pay a dividend; Fidelity National Financial, Inc. yields more (3.60% vs 3.44%). Across the 23 metrics below, Radian Group Inc. leads on 14 and Fidelity National Financial, Inc. on 9.

Valuation

Metric FNF RDN Insurance Specialty median
P/E 14.62 8.42 9.15
P/S 0.72 2.72 1.84
P/B 1.26 0.93 1.16
Price to free cash flow 2.04 3.21 8.16
EV/EBITDA 4.14 6.90 7.51
EV/Sales 0.77 3.37 2.17
Earnings yield 6.84% 11.87% 10.79%
Free cash flow yield 49.08% 31.11% 11.79%

Profitability

Metric FNF RDN Insurance Specialty median
Gross margin 55.91% 69.22% 73.81%
Operating margin 12.91% 48.72% 17.70%
Net margin 5.03% 32.60% 13.80%
Free cash flow margin 35.34% 84.53% 34.47%
Return on equity 8.76% 11.53% 12.01%
Return on assets 0.71% 5.30% 4.12%
Return on invested capital 11.32% 7.69% 8.77%

Growth

Metric FNF RDN Insurance Specialty median
Revenue growth (TTM) 13.03% 41.92% 7.53%
EPS growth (last fiscal year) (50.71%) 5.61% —
Revenue growth, 5-year CAGR 6.03% (3.61%) 2.24%
Net income growth, 5-year CAGR (15.85%) 8.16% 0.00%

Health

Metric FNF RDN Insurance Specialty median
Debt to equity 0.50 0.26 0.15
Current ratio 0.25 0.39 0.53
Net debt to EBITDA 0.71 1.20 0.28

Dividend

Metric FNF RDN Insurance Specialty median
Dividend yield 3.60% 3.44% 2.60%
Payout ratio 1.32 0.21 0.21

Size

Metric FNF RDN Insurance Specialty median
Market cap 10.95b 4.44b 3.13b

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