NMI Holdings Inc (NMIH) vs Octave Specialty Group, Inc. (OSG)

NMI Holdings Inc and Octave Specialty Group, Inc. are both Insurance Specialty companies. NMI Holdings Inc is the larger, with a market value of $3.0B against $207.2M — 14.6× the size. Octave Specialty Group, Inc. has negative trailing earnings, so its P/E is not meaningful; NMI Holdings Inc trades at 7.9×. Octave Specialty Group, Inc. grew revenue faster over the last twelve months: 26.8% against 7.53%. NMI Holdings Inc has the higher net margin (54.1% vs −51.1%) and the higher return on invested capital (10.4% vs −1.66%). Across the 18 metrics below, NMI Holdings Inc leads on 12 and Octave Specialty Group, Inc. on 6.

Valuation

Metric NMIH OSG Insurance Specialty median
P/E 7.87 n/m 8.97
P/S 4.22 0.66 1.87
P/B 1.14 0.26 1.15
Price to free cash flow 6.99 n/m 8.00
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 12.70% (78.33%) 10.57%
Free cash flow yield 14.31% (29.37%) 12.08%

Profitability

Metric NMIH OSG Insurance Specialty median
Gross margin 89.94% 75.14% 73.81%
Operating margin 73.24% (7.39%) 17.70%
Net margin 54.10% (51.11%) 13.80%
Free cash flow margin 60.43% (19.37%) 34.47%
Return on equity 15.43% (17.75%) 12.01%
Return on assets 10.42% (3.03%) 4.12%
Return on invested capital 10.38% (1.66%) 8.77%

Growth

Metric NMIH OSG Insurance Specialty median
Revenue growth (TTM) 7.53% 26.78% 7.53%
EPS growth (last fiscal year) 11.06% 44.63% 5.61%
Revenue growth, 5-year CAGR 10.27% 10.00% 2.24%
Net income growth, 5-year CAGR 17.78% 0.00% 0.00%

Health

Metric NMIH OSG Insurance Specialty median
Debt to equity 0.15 0.19 0.15
Current ratio 0.56 0.83 0.53
Net debt to EBITDA 0.69 (14.51) 0.28

Dividend

Metric NMIH OSG Insurance Specialty median
Dividend yield — 0.00% 2.09%
Payout ratio — — 0.20

Size

Metric NMIH OSG Insurance Specialty median
Market cap 3.02b 207.23m 3.07b

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