Financial Review: Hamilton Insurance Group (NYSE:HG) versus Radian Group (NYSE:RDN)

Hamilton Insurance Group (NYSE:HG) and Radian Group (NYSE:RDN) are both mid-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Volatility & Risk

Hamilton Insurance Group has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, Radian Group has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.

Institutional and Insider Ownership

29.2% of Hamilton Insurance Group shares are held by institutional investors. Comparatively, 95.3% of Radian Group shares are held by institutional investors. 17.5% of Hamilton Insurance Group shares are held by company insiders. Comparatively, 2.0% of Radian Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Hamilton Insurance Group and Radian Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hamilton Insurance Group	0	2	7	1	2.90
Radian Group	1	3	1	1	2.33

Hamilton Insurance Group presently has a consensus price target of $28.00, suggesting a potential upside of 7.67%. Radian Group has a consensus price target of $38.00, suggesting a potential upside of 8.81%. Given Radian Group’s higher possible upside, analysts clearly believe Radian Group is more favorable than Hamilton Insurance Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hamilton Insurance Group	15.95%	15.07%	4.46%
Radian Group	45.62%	13.25%	6.88%

Earnings and Valuation

This table compares Hamilton Insurance Group and Radian Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hamilton Insurance Group	$2.33 billion	1.12	$400.43 million	$4.20	6.19
Radian Group	$1.29 billion	3.68	$604.44 million	$4.01	8.71

Radian Group has lower revenue, but higher earnings than Hamilton Insurance Group. Hamilton Insurance Group is trading at a lower price-to-earnings ratio than Radian Group, indicating that it is currently the more affordable of the two stocks.

Summary

Radian Group beats Hamilton Insurance Group on 7 of the 13 factors compared between the two stocks.

About Hamilton Insurance Group

Hamilton Insurance Group, Ltd., through its subsidiaries, provides underwriting specialty insurance and reinsurance risks in Bermuda and internationally. The company operates Hamilton Global Specialty, Hamilton Select, and Hamilton Re underwriting platforms. The company offers casualty reinsurance products, such as commercial motor, general liability, healthcare, multiline, personal motor, professional liability, umbrella and excess casualty, and worker's compensation and employer's liability reinsurance; property reinsurance and insurance; and specialty reinsurance solutions, including accident and health, aviation and space, crisis management, mortgage, financial lines, marine and energy, and multiline specialty. In addition, it offers accident and health, cyber, energy, environmental, financial lines, fine art and specie, kidnap and ransom, mergers and acquisitions, marine and energy liability, political risk and violence, professional liability, property binders, property direct and facultative, professional lines, space, upstream energy, excess casualty, war and terrorism, allied medical, management liability, medical professionals, general liability, products liability and contractors, and small business casualty insurance plans, as well as surety and treaty reinsurance products. The company was incorporated in 2013 and is headquartered in Pembroke, Bermuda.

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.