Head to Head Contrast: Allstate (NYSE:ALL) versus NMI (NASDAQ:NMIH)

NMI (NASDAQ:NMIH) and Allstate (NYSE:ALL) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.

Institutional & Insider Ownership

94.1% of NMI shares are owned by institutional investors. Comparatively, 76.5% of Allstate shares are owned by institutional investors. 3.0% of NMI shares are owned by company insiders. Comparatively, 1.7% of Allstate shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NMI	$650.97 million	4.67	$360.11 million	$4.78	8.27
Allstate	$64.11 billion	0.82	$4.67 billion	$30.89	6.52

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

Analyst Ratings

This is a summary of current ratings for NMI and Allstate, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NMI	0	3	3	0	2.50
Allstate	1	4	10	2	2.76

NMI currently has a consensus price target of $41.20, indicating a potential upside of 4.20%. Allstate has a consensus price target of $237.92, indicating a potential upside of 18.13%. Given Allstate’s stronger consensus rating and higher possible upside, analysts plainly believe Allstate is more favorable than NMI.

Profitability

This table compares NMI and Allstate’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NMI	55.02%	16.08%	10.79%
Allstate	12.53%	35.42%	6.65%

Volatility and Risk

NMI has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Allstate has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500.

Summary

Allstate 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 Allstate

The Allstate Corporation, together with its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada. It operates in five segments: Allstate Protection; Protection Services; Allstate Health and Benefits; Run-off Property-Liability; and Corporate and Other segments. The Allstate Protection segment offers private passenger auto and homeowners insurance; other personal lines products; and commercial lines products through agents, contact centers, and online. The Protection Services segment provides consumer product protection; protection and insurance products, including vehicle service contracts, guaranteed asset protection, road hazard tire and wheel, and paintless dent repair protection; and roadside assistance, device and mobile data collection services, and analytic solutions using automotive telematics information, as well as identity theft protection and remediation services. This segment also offers its products under various brands, including Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside, Arity, Avail, and Allstate Identity Protection. The Allstate Health and Benefits segment provides life, accident, critical illness, short-term disability, and other health insurance products; stop-loss and fully insured group health products to employers; and short-term medical and medicare supplement insurance to individuals. The Run-off Property-Liability segment offers property and casualty insurance coverage that primarily relates to policies written during the 1960s through the mid-1980s. The Corporate and Other segment provides debt services, as well as non-insurance operations. It sells its products through agents, independent agents, call and contact centers, retailers, direct to consumer, wholesale partners, and affinity groups, as well as through online and mobile applications. The Allstate Corporation was founded in 1931 and is headquartered in Northbrook, Illinois.