Radian Group Inc. (RDN) vs Ryan Specialty Holdings Inc. (RYAN)

Radian Group Inc. and Ryan Specialty Holdings Inc. are both Insurance Specialty companies. Ryan Specialty Holdings Inc. is the larger, with a market value of $9.4B against $4.4B — 2.1× the size. Radian Group Inc. trades at the lower P/E: 8.4× against 49.2×. Radian Group Inc. grew revenue faster over the last twelve months: 41.9% against 14.4%. Radian Group Inc. has the higher net margin (32.6% vs 3.08%) and the higher return on invested capital (7.69% vs 6.62%). Across the 22 metrics below, Radian Group Inc. leads on 17 and Ryan Specialty Holdings Inc. on 5.

Valuation

Metric RDN RYAN Insurance Specialty median
P/E 8.42 49.21 9.15
P/S 2.72 1.48 1.84
P/B 0.93 4.67 1.16
Price to free cash flow 3.21 9.63 8.16
EV/EBITDA 6.90 10.62 7.51
EV/Sales 3.37 2.56 2.17
Earnings yield 11.87% 2.03% 10.79%
Free cash flow yield 31.11% 10.38% 11.79%

Profitability

Metric RDN RYAN Insurance Specialty median
Gross margin 69.22% 100.00% 73.81%
Operating margin 48.72% 14.83% 17.70%
Net margin 32.60% 3.08% 13.80%
Free cash flow margin 84.53% 15.31% 34.47%
Return on equity 11.53% 9.01% 12.01%
Return on assets 5.30% 0.88% 4.12%
Return on invested capital 7.69% 6.62% 8.77%

Growth

Metric RDN RYAN Insurance Specialty median
Revenue growth (TTM) 41.92% 14.36% 7.53%
EPS growth (last fiscal year) 5.61% (33.80%) —
Revenue growth, 5-year CAGR (3.61%) 24.54% 2.24%
Net income growth, 5-year CAGR 8.16% (1.42%) 0.00%

Health

Metric RDN RYAN Insurance Specialty median
Debt to equity 0.26 3.58 0.15
Current ratio 0.39 1.00 0.53
Net debt to EBITDA 1.20 4.00 0.28

Dividend

Metric RDN RYAN Insurance Specialty median
Dividend yield 3.44% — 2.60%
Payout ratio 0.21 0.00 0.21

Size

Metric RDN RYAN Insurance Specialty median
Market cap 4.44b 9.40b 3.13b

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