Head to Head Analysis: Radian Group (NYSE:RDN) vs. Allianz (OTCMKTS:ALIZY)

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

Analyst Ratings

This is a summary of current ratings and price targets for Radian Group and Allianz, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Radian Group	0	4	0	2	2.67
Allianz	1	4	0	0	1.80

Radian Group currently has a consensus target price of $37.00, suggesting a potential upside of 6.18%. Given Radian Group’s stronger consensus rating and higher probable upside, analysts clearly believe Radian Group is more favorable than Allianz.

Risk and Volatility

Radian Group has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Allianz has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Dividends

Radian Group pays an annual dividend of $1.02 per share and has a dividend yield of 2.9%. Allianz pays an annual dividend of $1.18 per share and has a dividend yield of 2.8%. Radian Group pays out 25.7% of its earnings in the form of a dividend. Allianz pays out 41.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Radian Group has increased its dividend for 6 consecutive years. Radian Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

95.3% of Radian Group shares are owned by institutional investors. Comparatively, 0.0% of Allianz shares are owned by institutional investors. 2.0% of Radian Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Radian Group	45.62%	13.25%	6.88%
Allianz	5.47%	16.58%	1.01%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Radian Group	$1.29 billion	3.66	$604.44 million	$3.97	8.78
Allianz	$194.56 billion	0.84	$10.75 billion	$2.84	14.95

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

Summary

Radian Group beats Allianz on 12 of the 17 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 Allianz

Allianz SE, together with its subsidiaries, provides property-casualty insurance, life/health insurance, and asset management products and services worldwide. The company’s Property-Casualty segment offers various insurance products, including motor liability and own damage, accident, general liability, fire and property, legal expense, credit, and travel to private and corporate customers. Its Life/Health segment provides a range of life and health insurance products on an individual and a group basis, such as annuities, endowment and term insurance, and unit-linked and investment-oriented products, as well as private and supplemental health, and long-term care insurance products. The company’s Asset Management segment offers institutional and retail asset management products and services to third-party investors comprising equity and fixed income funds, and multi-assets; and alternative investment products that include real estate, infrastructure debt/equity, real assets, liquid alternatives, and solutions. Its Corporate and Other segment provides banking services for retail clients, as well as digital investment services. Allianz SE was founded in 1890 and is headquartered in Munich, Germany.