Axis Capital (NYSE:AXS – Get Free Report) and NMI (NASDAQ:NMIH – Get Free Report) are both mid-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.
Insider & Institutional Ownership
93.4% of Axis Capital shares are owned by institutional investors. Comparatively, 94.1% of NMI shares are owned by institutional investors. 0.6% of Axis Capital shares are owned by insiders. Comparatively, 2.4% of NMI shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Axis Capital and NMI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Axis Capital | 16.00% | 18.12% | 3.02% |
| NMI | 53.82% | 15.18% | 10.23% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Axis Capital | 0 | 2 | 8 | 0 | 2.80 |
| NMI | 0 | 1 | 4 | 0 | 2.80 |
Axis Capital currently has a consensus price target of $122.10, suggesting a potential upside of 22.29%. NMI has a consensus price target of $44.80, suggesting a potential upside of 19.79%. Given Axis Capital’s higher probable upside, analysts plainly believe Axis Capital is more favorable than NMI.
Risk and Volatility
Axis Capital has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, NMI has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.
Valuation and Earnings
This table compares Axis Capital and NMI”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Axis Capital | $6.56 billion | 1.12 | $1.01 billion | $13.42 | 7.44 |
| NMI | $706.44 million | 4.02 | $388.93 million | $4.91 | 7.62 |
Axis Capital has higher revenue and earnings than NMI. Axis Capital 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 Axis Capital on 7 of the 13 factors compared between the two stocks.
About Axis Capital
AXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products in Bermuda, the United States, and internationally. It operates through two segments, Insurance and Reinsurance. The Insurance segment offers professional insurance products that cover directors' and officers' liability, errors and omissions, employment practices, fiduciary, crime, professional indemnity, medical malpractice, and other financial insurance related coverages for commercial enterprises, financial institutions, not-for-profit organizations, and other professional service providers; and property insurance products for commercial buildings, residential premises, construction projects, property in transit, onshore renewable energy installations, and physical damage and business interruption following an act of terrorism. This segment also provides marine and aviation insurance services for offshore energy, renewable offshore energy, cargo, liability, including kidnap and ransom, fine art, specie, and hull war, hull and liability, and specific war coverage for passenger airlines, cargo operations, general aviation operations, airports, aviation authorities, security firms, and product manufacturers; personal accident, travel insurance, specialty health products for employer and affinity groups, and pet insurance products; and liability, cyber, and credit and political risk insurance services. The Reinsurance segment offers agriculture, marine and aviation, catastrophe, accidental and health, credit and surety, motor, professional, travel, life, engineering, property, and liability reinsurance products. AXIS Capital Holdings Limited was founded in 2001 and is headquartered in Pembroke, Bermuda.
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.
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