Reviewing Brookfield Wealth Solutions (NYSE:BNT) and NMI (NASDAQ:NMIH)

NMI (NASDAQ:NMIH) and Brookfield Wealth Solutions (NYSE:BNT) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.

Valuation and Earnings

This table compares NMI and Brookfield Wealth Solutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NMI	$706.44 million	4.12	$388.93 million	$5.09	7.67
Brookfield Wealth Solutions	$11.63 billion	1.22	$766.00 million	$0.26	161.65

Brookfield Wealth Solutions has higher revenue and earnings than NMI. NMI is trading at a lower price-to-earnings ratio than Brookfield Wealth Solutions, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for NMI and Brookfield Wealth Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NMI	0	3	5	0	2.62
Brookfield Wealth Solutions	0	1	0	0	2.00

NMI presently has a consensus target price of $47.88, indicating a potential upside of 22.60%. Given NMI’s stronger consensus rating and higher possible upside, research analysts plainly believe NMI is more favorable than Brookfield Wealth Solutions.

Insider & Institutional Ownership

94.1% of NMI shares are held by institutional investors. Comparatively, 20.3% of Brookfield Wealth Solutions shares are held by institutional investors. 2.4% of NMI shares are held by insiders. Comparatively, 1.0% of Brookfield Wealth Solutions shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

NMI has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, Brookfield Wealth Solutions has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.

Profitability

This table compares NMI and Brookfield Wealth Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NMI	53.11%	14.78%	9.98%
Brookfield Wealth Solutions	0.15%	0.10%	0.01%

Summary

NMI beats Brookfield Wealth Solutions on 10 of the 14 factors compared between the two stocks.

About NMI

NMI Holdings, Inc. provides private mortgage insurance through its subsidiary, National Mortgage Insurance Corporation. Its coverage helps lenders manage the risk of mortgage loans made to borrowers who have smaller down payments, while enabling borrowers to qualify for home financing without a 20% down payment. The company offers mortgage insurance products and related services to mortgage lenders, banks, credit unions and other housing-market participants. Its offerings include borrower-paid and lender-paid coverage, along with technology and services that support mortgage insurance underwriting and policy management.

About Brookfield Wealth Solutions

Brookfield Wealth Solutions Ltd. provides insurance and retirement services, including annuities, life insurance and solutions that help organizations manage long-term pension obligations. Its business focuses on protecting policyholders and supporting retirement income needs. The company operates primarily in North America and serves individuals, businesses and institutional clients. Its offerings include retirement savings and income products distributed through financial professionals and other channels.