Comparing The PMI Group (OTCMKTS:PPMIQ) & Radian Group (NYSE:RDN)

Radian Group (NYSE:RDN) and The PMI Group (OTCMKTS:PPMIQ) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.

Valuation & Earnings

This table compares Radian Group and The PMI Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Radian Group	$1.30 billion	3.95	$603.12 million	$3.86	8.95
The PMI Group	N/A	N/A	N/A	N/A	N/A

Radian Group has higher revenue and earnings than The PMI Group.

Analyst Ratings

This is a breakdown of current ratings and price targets for Radian Group and The PMI Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Radian Group	0	3	2	0	2.40
The PMI Group	0	0	0	0	0.00

Radian Group presently has a consensus target price of $36.10, suggesting a potential upside of 4.46%. Given Radian Group’s stronger consensus rating and higher possible upside, analysts plainly believe Radian Group is more favorable than The PMI Group.

Insider and Institutional Ownership

95.3% of Radian Group shares are held by institutional investors. 2.2% of Radian Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Radian Group and The PMI Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Radian Group	45.96%	13.81%	7.80%
The PMI Group	N/A	N/A	N/A

Summary

Radian Group beats The PMI Group on 9 of the 9 factors compared between the two stocks.

About Radian Group

Radian Group Inc., together with its subsidiaries, engages in the mortgage and real estate services business in the United States. It operates through two segments, Mortgage Insurance and Homegenius segments. The Mortgage Insurance segment aggregates, manages, and distributes U.S. mortgage credit risk for mortgage lending institutions and mortgage credit investors, through private mortgage insurance on residential first-lien mortgage loans; and other credit risk management solutions, including contract underwriting. The Homegenius segment offers title services, including a suite of insurance and non-insurance titles; tax and title data, centralized recording, document retrieval, and default curative title services; deed and property reports; closing and settlement services; mortgage underwriting and processing; escrow; appraisal management; and real estate brokerage. This segment also provides real estate valuation products and services; asset management services for managing real estate owned properties, which includes a web-based workflow solution; and a suite of real estate technology products and services to facilitate real estate transactions, such as proprietary platforms as a service solution. It serves mortgage originators, such as mortgage bankers, commercial banks, savings institutions, credit unions, and community banks; and consumers, mortgage lenders, mortgage and real estate investors, government-sponsored enterprises, real estate brokers and agents, and corporations for their employees. The company was formerly known as CMAC Investment Corp. and changed its name to Radian Group Inc. in June 1999. Radian Group Inc. was founded in 1977 and is headquartered in Wayne, Pennsylvania.

About The PMI Group

The PMI Group, Inc. (TPG) through its subsidiary PMI Mortgage Insurance Co. (MIC), and its affiliated companies (collectively PMI), provides residential mortgage insurance in the United States. During the year ended December 31, 2009, the Company operated in three business segments: United States Mortgage Insurance Operations, International Operations and Corporate and Other. As a United States residential mortgage insurer, PMI offers a variety of mortgage insurance products to meet the capital and credit risk mitigation needs of its customers. In November 2011, the Company announced that it has filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.