Analyzing Scor (OTCMKTS:SCRYY) & Radian Group (NYSE:RDN)

Radian Group (NYSE:RDN) and Scor (OTCMKTS:SCRYY) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Insider and Institutional Ownership

95.3% of Radian Group shares are owned by institutional investors. 2.2% of Radian Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Radian Group pays an annual dividend of $1.02 per share and has a dividend yield of 2.9%. Scor pays an annual dividend of $0.13 per share and has a dividend yield of 4.3%. Radian Group pays out 25.4% of its earnings in the form of a dividend. Scor pays out 24.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Radian Group has raised its dividend for 6 consecutive years. Scor is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Radian Group and Scor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Radian Group	$1.28 billion	3.75	$604.44 million	$4.01	8.81
Scor	$17.45 billion	0.31	$4.33 million	$0.54	5.61

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

Volatility and Risk

Radian Group has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Scor has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Radian Group and Scor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Radian Group	1	3	0	2	2.50
Scor	0	2	2	2	3.00

Radian Group presently has a consensus price target of $38.00, indicating a potential upside of 7.53%. Given Radian Group’s higher probable upside, equities analysts plainly believe Radian Group is more favorable than Scor.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Radian Group	45.62%	13.25%	6.88%
Scor	3.41%	11.92%	1.44%

Summary

Radian Group beats Scor on 10 of the 17 factors compared between the two stocks.

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.

About Scor

SCOR SE, together with its subsidiaries, provides life and non-life reinsurance products in Europe, the Middle East, Africa, the Americas, Latin America, and Asia Pacific. It operates in two segments, SCOR P&C and SCOR L&H. The SCOR P&C segment offers reinsurance products in the areas of property, motors, casualty treaties, credit and surety, decennial insurance, aviation, marine and energy, engineering, agricultural risks, and property catastrophes; specialties insurance products, including business solutions, political and credit risks, cyber, and environmental liability; and business ventures and partnerships. The SCOR L&H segment provides life reinsurance products, such as protection for mortality, morbidity, behavioral risks, disability, long-term care, critical illness, medical, and personal accident. This segment also provides financial solutions that combine traditional life reinsurance with financial components and provide liquidity, balance sheet, solvency, and income improvements to clients; longevity solutions that include products covering the risk of negative deviation from expected results due to the insured or annuitant living longer than assumed in the pricing of insurance covers provided by insurers or pension funds; and distribution solutions. In addition, it is involved in the asset management business. SCOR SE was founded in 1970 and is headquartered in Paris, France.