MGIC Investment Corporation (MTG) vs Radian Group Inc. (RDN)

MGIC Investment Corporation and Radian Group Inc. are both Insurance Specialty companies. MGIC Investment Corporation is the larger, with a market value of $5.9B against $4.4B — 1.3× the size. Radian Group Inc. trades at the lower P/E: 8.4× against 8.9×. Radian Group Inc. grew revenue faster over the last twelve months: 41.9% against −1.88%. MGIC Investment Corporation has the higher net margin (59.2% vs 32.6%) and the higher return on invested capital (10.6% vs 7.69%). Both pay a dividend; Radian Group Inc. yields more (3.44% vs 2.50%). Across the 23 metrics below, MGIC Investment Corporation leads on 12 and Radian Group Inc. on 11.

Valuation

Metric MTG RDN Insurance Specialty median
P/E 8.92 8.42 9.15
P/S 5.01 2.72 1.84
P/B 1.20 0.93 1.16
Price to free cash flow 8.48 3.21 8.16
EV/EBITDA 6.95 6.90 7.51
EV/Sales 5.37 3.37 2.17
Earnings yield 11.21% 11.87% 10.79%
Free cash flow yield 11.79% 31.11% 11.79%

Profitability

Metric MTG RDN Insurance Specialty median
Gross margin 77.48% 69.22% 73.81%
Operating margin 76.96% 48.72% 17.70%
Net margin 59.20% 32.60% 13.80%
Free cash flow margin 59.09% 84.53% 34.47%
Return on equity 13.92% 11.53% 12.01%
Return on assets 10.83% 5.30% 4.12%
Return on invested capital 10.56% 7.69% 8.77%

Growth

Metric MTG RDN Insurance Specialty median
Revenue growth (TTM) (1.88%) 41.92% 7.53%
EPS growth (last fiscal year) 8.65% 5.61% —
Revenue growth, 5-year CAGR 0.24% (3.61%) 2.24%
Net income growth, 5-year CAGR 10.60% 8.16% 0.00%

Health

Metric MTG RDN Insurance Specialty median
Debt to equity 0.13 0.26 0.15
Current ratio 0.64 0.39 0.53
Net debt to EBITDA 0.28 1.20 0.28

Dividend

Metric MTG RDN Insurance Specialty median
Dividend yield 2.50% 3.44% 2.60%
Payout ratio 0.15 0.21 0.21

Size

Metric MTG RDN Insurance Specialty median
Market cap 5.89b 4.44b 3.13b

Compare with another peer

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