Comparing International Money Express (NASDAQ:IMXI) and Radian Group (NYSE:RDN)

International Money Express (NASDAQ:IMXI) and Radian Group (NYSE:RDN) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings for International Money Express and Radian Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Money Express	1	0	0	0	1.00
Radian Group	1	2	6	0	2.56

Radian Group has a consensus target price of $43.14, suggesting a potential upside of 29.27%. Given Radian Group’s stronger consensus rating and higher probable upside, analysts clearly believe Radian Group is more favorable than International Money Express.

Insider and Institutional Ownership

86.7% of International Money Express shares are held by institutional investors. Comparatively, 95.3% of Radian Group shares are held by institutional investors. 5.1% of International Money Express shares are held by insiders. Comparatively, 2.0% of Radian Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
International Money Express	3.35%	17.01%	5.44%
Radian Group	32.60%	13.65%	6.91%

Volatility and Risk

International Money Express has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Radian Group has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Earnings & Valuation

This table compares International Money Express and Radian Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Money Express	$607.78 million	0.52	$32.67 million	$0.62	16.98
Radian Group	$1.20 billion	3.69	$582.64 million	$3.89	8.58

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

Summary

Radian Group beats International Money Express on 10 of the 14 factors compared between the two stocks.

About International Money Express

International Money Express, Inc., together with its subsidiaries, operates as an omnichannel money remittance services company in the United States, Latin America, Mexico, Central and South America, the Caribbean, Africa, and Asia. The company offers remittance services, which include a suite of ancillary financial processing solutions and payment services; and online payment options, pre-paid debit cards, and direct deposit payroll cards. It provides services through sending and paying agents and company-operated stores, as well as through online and Internet-enabled mobile devices. International Money Express, Inc. is headquartered in Miami, Florida.

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.