Comparing NMI (NASDAQ:NMIH) and MS&AD Insurance Group (OTCMKTS:MSADY)

MS&AD Insurance Group (OTCMKTS:MSADY) and NMI (NASDAQ:NMIH) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

Institutional & Insider Ownership

0.0% of MS&AD Insurance Group shares are held by institutional investors. Comparatively, 94.1% of NMI shares are held by institutional investors. 3.0% of NMI shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares MS&AD Insurance Group and NMI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MS&AD Insurance Group	10.57%	16.56%	2.63%
NMI	55.02%	16.08%	10.79%

Risk and Volatility

MS&AD Insurance Group has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, NMI has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for MS&AD Insurance Group and NMI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MS&AD Insurance Group	0	1	0	0	2.00
NMI	0	3	3	0	2.50

NMI has a consensus price target of $41.20, suggesting a potential upside of 12.41%. Given NMI’s stronger consensus rating and higher probable upside, analysts clearly believe NMI is more favorable than MS&AD Insurance Group.

Valuation & Earnings

This table compares MS&AD Insurance Group and NMI”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MS&AD Insurance Group	$43.74 billion	0.77	$4.56 billion	$3.12	6.69
NMI	$650.97 million	4.33	$360.11 million	$4.78	7.67

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

Summary

NMI beats MS&AD Insurance Group on 11 of the 14 factors compared between the two stocks.

About MS&AD Insurance Group

MS&AD Insurance Group Holdings, Inc., an insurance holding company, provides insurance and financial services worldwide. The company offers domestic non-life insurance; life insurance; international business; financial services; and provides risk-related services. The company was formerly known as Mitsui Sumitomo Insurance Group Holdings, Inc. and changed its name to MS&AD Insurance Group Holdings, Inc. in April 2010. MS&AD Insurance Group Holdings, Inc. was founded in 1918 and is headquartered in Tokyo, Japan.

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.