Octave Specialty Group, Inc. (OSG) vs Radian Group Inc. (RDN)

Octave Specialty Group, Inc. and Radian Group Inc. are both Insurance Specialty companies. Radian Group Inc. is the larger, with a market value of $4.9B against $231.6M — 21.3× the size. Octave Specialty Group, 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 26.8%. Radian Group Inc. has the higher net margin (32.6% vs −51.1%) and the higher return on invested capital (7.69% vs −1.66%). Only Radian Group Inc. pays a dividend (2.75%). Across the 19 metrics below, Radian Group Inc. leads on 11 and Octave Specialty Group, Inc. on 8.

Valuation

Metric OSG RDN Insurance Specialty median
P/E n/m 9.47 9.49
P/S 0.73 3.06 1.69
P/B 0.29 1.05 1.23
Price to free cash flow n/m 3.61 8.44
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (67.51%) 10.56% 10.48%
Free cash flow yield (26.63%) 27.67% 10.87%

Profitability

Metric OSG RDN Insurance Specialty median
Gross margin 75.14% 69.22% 56.22%
Operating margin (7.39%) 48.72% 15.19%
Net margin (51.11%) 32.60% 13.80%
Free cash flow margin (19.37%) 84.53% 34.47%
Return on equity (17.75%) 11.53% 12.01%
Return on assets (3.03%) 5.30% 3.55%
Return on invested capital (1.66%) 7.69% 9.88%

Growth

Metric OSG RDN Insurance Specialty median
Revenue growth (TTM) 26.78% 41.92% 7.68%
EPS growth (last fiscal year) 50.42% 5.61% 8.65%
Revenue growth, 5-year CAGR 10.00% (3.61%) 2.24%
Net income growth, 5-year CAGR 0.00% 8.16% 0.00%

Health

Metric OSG RDN Insurance Specialty median
Debt to equity 0.19 0.26 0.16
Current ratio 0.83 0.39 0.52
Net debt to EBITDA (14.51) 1.20 0.28

Dividend

Metric OSG RDN Insurance Specialty median
Dividend yield 0.00% 2.75% 2.06%
Payout ratio — 0.26 0.19

Size

Metric OSG RDN Insurance Specialty median
Market cap 231.57m 4.93b 3.31b

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