SelectQuote (NYSE:SLQT – Get Free Report) and Radian Group (NYSE:RDN – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.
Profitability
This table compares SelectQuote and Radian Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SelectQuote | 3.95% | 10.41% | 2.76% |
| Radian Group | 45.62% | 13.25% | 6.88% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for SelectQuote and Radian Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SelectQuote | 1 | 3 | 0 | 1 | 2.20 |
| Radian Group | 1 | 3 | 0 | 2 | 2.50 |
Volatility & Risk
SelectQuote has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Radian Group has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.
Valuation & Earnings
This table compares SelectQuote and Radian Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SelectQuote | $1.53 billion | 0.16 | $47.58 million | $0.05 | 28.50 |
| Radian Group | $1.28 billion | 3.67 | $604.44 million | $4.01 | 8.62 |
Radian Group has lower revenue, but higher earnings than SelectQuote. Radian Group is trading at a lower price-to-earnings ratio than SelectQuote, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
34.6% of SelectQuote shares are held by institutional investors. Comparatively, 95.3% of Radian Group shares are held by institutional investors. 13.1% of SelectQuote shares are held by insiders. Comparatively, 2.2% 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.
Summary
Radian Group beats SelectQuote on 9 of the 14 factors compared between the two stocks.
About SelectQuote
SelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance products and healthcare services in the United States. The company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance related products, including prescription drugs, dental, vision, and hearing plans; life insurance products, such as term life, final expense, and other ancillary products, including critical illness, accidental death, and juvenile insurance; homeowners, auto, dwelling fire, and other ancillary insurance products; and non-commercial auto and home property, and casualty policies. The company also provides SelectRx, an accredited patient-centered pharmacy home pharmacy, which offers essential prescription medications, OTC medications, customized medication packaging, medication therapy management, and long-term pharmacy care; and population health that helps members understand the benefits available under their health plans, and contracts with insurance carriers. SelectQuote, Inc. was incorporated in 1999 and is headquartered in Overland Park, Kansas.
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.
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