Head to Head Contrast: Radian Group (NYSE:RDN) & AIFU (NASDAQ:AIFU)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AIFU	$1.21 billion	0.01	$62.33 million	$14.60	0.27
Radian Group	$1.29 billion	3.68	$604.44 million	$4.01	8.71

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AIFU	N/A	N/A	N/A
Radian Group	45.62%	13.25%	6.88%

Institutional and Insider Ownership

26.7% of AIFU shares are held by institutional investors. Comparatively, 95.3% of Radian Group shares are held by institutional investors. 25.6% of AIFU 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.

Risk and Volatility

AIFU has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500. Comparatively, Radian Group has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for AIFU and Radian Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AIFU	0	1	0	0	2.00
Radian Group	1	3	1	1	2.33

Radian Group has a consensus price target of $38.00, indicating a potential upside of 8.81%. Given Radian Group’s stronger consensus rating and higher possible upside, analysts clearly believe Radian Group is more favorable than AIFU.

Summary

Radian Group beats AIFU on 13 of the 15 factors compared between the two stocks.

About AIFU

AIX, Inc. engages in the provision of agency services and insurance claims adjusting services. It operates through the Insurance Agency and Claims Adjusting segments. The Insurance Agency segment includes providing agency services for insurance products and life insurance products. The Claims Adjusting segment provides pre-underwriting survey services, claims adjusting services, disposal of residual value services, loading and unloading supervision services, and consulting services. The company was founded by Yin An Hu and Qiu Ping Lai in 1998 and is headquartered in Guangzhou, China.

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.