MBIA, Inc. (MBI) vs Radian Group Inc. (RDN)

MBIA, Inc. and Radian Group Inc. are both Insurance Specialty companies. Radian Group Inc. is the larger, with a market value of $4.9B against $227.5M — 21.7× the size. MBIA, Inc. has negative trailing earnings, so its P/E is not meaningful; Radian Group Inc. trades at 9.5×. Radian Group Inc. grew revenue faster over the last twelve months: 41.9% against 18.0%. Radian Group Inc. has the higher net margin (32.6% vs 0.00%) and the higher return on invested capital (7.69% vs 0.00%). Across the 17 metrics below, Radian Group Inc. leads on 13 and MBIA, Inc. on 4.

Valuation

Metric MBI RDN Insurance Specialty median
P/E n/m 9.47 9.49
P/S 2.16 3.06 1.69
P/B n/m 1.05 1.23
Price to free cash flow n/m 3.61 8.44
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (71.18%) 10.56% 10.48%
Free cash flow yield (54.26%) 27.67% 10.87%

Profitability

Metric MBI RDN Insurance Specialty median
Gross margin 0.00% 69.22% 56.22%
Operating margin 0.00% 48.72% 15.19%
Net margin 0.00% 32.60% 13.80%
Free cash flow margin (114.29%) 84.53% 34.47%
Return on equity 0.00% 11.53% 12.01%
Return on assets 0.00% 5.30% 3.55%
Return on invested capital 0.00% 7.69% 9.88%

Growth

Metric MBI RDN Insurance Specialty median
Revenue growth (TTM) 17.98% 41.92% 7.68%
EPS growth (last fiscal year) 62.04% 5.61% 8.65%
Revenue growth, 5-year CAGR (22.27%) (3.61%) 2.24%
Net income growth, 5-year CAGR 0.00% 8.16% 0.00%

Health

Metric MBI RDN Insurance Specialty median
Debt to equity 0.00 0.26 0.16
Current ratio 0.53 0.39 0.52
Net debt to EBITDA 213.63 1.20 0.28

Dividend

Metric MBI RDN Insurance Specialty median
Dividend yield — 2.75% 2.06%
Payout ratio — 0.26 0.19

Size

Metric MBI RDN Insurance Specialty median
Market cap 227.53m 4.93b 3.31b

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