NMI (NASDAQ:NMIH) vs. Chime Financial (NASDAQ:CHYM) Head-To-Head Analysis

Chime Financial (NASDAQ:CHYM) and NMI (NASDAQ:NMIH) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Profitability

This table compares Chime Financial and NMI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chime Financial	3.05%	6.87%	4.94%
NMI	54.10%	15.13%	10.21%

Valuation and Earnings

This table compares Chime Financial and NMI”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chime Financial	$2.19 billion	5.22	-$1.01 billion	($0.07)	-431.14
NMI	$706.44 million	4.71	$388.93 million	$5.08	8.71

NMI has lower revenue, but higher earnings than Chime Financial. Chime Financial is trading at a lower price-to-earnings ratio than NMI, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Chime Financial has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, NMI has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.

Institutional and Insider Ownership

94.1% of NMI shares are owned by institutional investors. 12.3% of Chime Financial shares are owned by insiders. Comparatively, 2.4% of NMI shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Chime Financial and NMI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chime Financial	1	2	17	3	2.96
NMI	0	3	5	0	2.62

Chime Financial currently has a consensus price target of $39.47, suggesting a potential upside of 30.79%. NMI has a consensus price target of $47.88, suggesting a potential upside of 8.14%. Given Chime Financial’s stronger consensus rating and higher possible upside, research analysts plainly believe Chime Financial is more favorable than NMI.

Summary

Chime Financial beats NMI on 9 of the 15 factors compared between the two stocks.

About Chime Financial

Chime is a financial technology company that partners with federally regulated, FDIC-insured banks—The Bancorp Bank, N.A. and Stride Bank, N.A., Members FDIC—to provide consumer banking products and services. The company’s model is designed to eliminate common fees and simplify access to basic financial services.

Chime does not charge overdraft fees, monthly service fees, or require minimum balances. All account balances are held at partner banks and protected by applicable regulatory safeguards to ensure funds remain secure and accessible.

About NMI

NMI Holdings, Inc. provides private mortgage guaranty insurance services in the United States. The company offers mortgage insurance services, such as primary and pool insurance; and outsourced loan review services to mortgage loan originators. It serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders, and other non-bank lenders. The company was incorporated in 2011 and is headquartered in Emeryville, California.