MBIA (NYSE:MBI – Get Free Report) and Stewart Information Services (NYSE:STC – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.
Risk and Volatility
MBIA has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500. Comparatively, Stewart Information Services has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.
Valuation & Earnings
This table compares MBIA and Stewart Information Services”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MBIA | $80.00 million | 2.79 | -$177.00 million | ($2.89) | -1.52 |
| Stewart Information Services | $3.27 billion | 0.59 | $115.54 million | $4.56 | 13.89 |
Stewart Information Services has higher revenue and earnings than MBIA. MBIA is trading at a lower price-to-earnings ratio than Stewart Information Services, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares MBIA and Stewart Information Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MBIA | -154.26% | N/A | -1.69% |
| Stewart Information Services | 4.12% | 10.02% | 5.12% |
Insider & Institutional Ownership
61.0% of MBIA shares are held by institutional investors. Comparatively, 96.9% of Stewart Information Services shares are held by institutional investors. 11.3% of MBIA shares are held by insiders. Comparatively, 2.9% of Stewart Information Services shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and price targets for MBIA and Stewart Information Services, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MBIA | 1 | 0 | 1 | 0 | 2.00 |
| Stewart Information Services | 1 | 1 | 4 | 0 | 2.50 |
MBIA presently has a consensus price target of $7.00, indicating a potential upside of 59.64%. Stewart Information Services has a consensus price target of $81.50, indicating a potential upside of 28.71%. Given MBIA’s higher possible upside, equities research analysts clearly believe MBIA is more favorable than Stewart Information Services.
Summary
Stewart Information Services beats MBIA on 10 of the 14 factors compared between the two stocks.
About MBIA
MBIA Inc. provides financial guarantee insurance services to public finance markets in the United States. It operates United States (U.S.) Public Finance Insurance, and International and Structured Finance Insurance segments. The company issues financial guarantees for municipal bonds, including tax-exempt and taxable indebtedness of the U.S. political subdivisions, as well as utility districts, airports, health care institutions, higher educational facilities, housing authorities, and other similar agencies and obligations issued by private entities. It also insures the non-U.S. public finance and global structured finance, including asset-backed obligations; and sovereign-related and sub-sovereign bonds, and privately issued bonds used for the financing for utilities, toll roads, bridges, public transportation facilities, and other types of infrastructure projects, as well as offers third-party reinsurance services. MBIA Inc. was founded in 1973 and is headquartered in Purchase, New York.
About Stewart Information Services
Stewart Information Services Corporation, through its subsidiaries, provides title insurance and real estate transaction related services in the United States and internationally. The company involves in searching, examining, closing, and insuring the condition of the title to real property. It also offers home and personal insurance services; services for tax-deferred exchanges; and digital customer engagement platform services. It also provides appraisal management, online notarization and closing, credit and real estate information, and search and valuation services. The company serves homebuyers and sellers, residential and commercial real estate professionals, mortgage lenders and servicers, title agencies and real estate attorneys, and home builders through direct operations, network of independent agencies, and other businesses. The company was founded in 1893 and is headquartered in Houston, Texas.
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