NMI (NASDAQ:NMIH – Get Free Report) and Chime Financial (NASDAQ:CHYM – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
Earnings and Valuation
This table compares NMI and Chime Financial”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NMI | $706.44 million | 4.54 | $388.93 million | $5.08 | 8.40 |
| Chime Financial | $2.19 billion | 4.84 | -$1.01 billion | ($0.07) | -399.29 |
NMI has higher earnings, but lower revenue than Chime Financial. Chime Financial is trading at a lower price-to-earnings ratio than NMI, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
94.1% of NMI shares are owned by institutional investors. 2.4% of NMI shares are owned by company insiders. Comparatively, 12.3% of Chime Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and price targets for NMI and Chime Financial, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NMI | 0 | 3 | 5 | 0 | 2.62 |
| Chime Financial | 1 | 3 | 17 | 3 | 2.92 |
NMI presently has a consensus target price of $47.88, indicating a potential upside of 12.20%. Chime Financial has a consensus target price of $36.38, indicating a potential upside of 30.16%. Given Chime Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Chime Financial is more favorable than NMI.
Profitability
This table compares NMI and Chime Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NMI | 54.10% | 15.13% | 10.21% |
| Chime Financial | -0.74% | -1.28% | -0.92% |
Volatility & Risk
NMI has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Chime Financial has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.
Summary
Chime Financial beats NMI on 8 of the 15 factors compared between the two stocks.
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.
About Chime Financial
Chime is a financial technology company that partners with federally regulated, FDIC-insured banks—The Bancorp Bank, N.A. and Stride Bank, N.A., Members FDIC—to provide consumer banking products and services. The company’s model is designed to eliminate common fees and simplify access to basic financial services.
Chime does not charge overdraft fees, monthly service fees, or require minimum balances. All account balances are held at partner banks and protected by applicable regulatory safeguards to ensure funds remain secure and accessible.
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