The PMI Group (OTCMKTS:PPMIQ) & Global Indemnity Group (NASDAQ:GBLI) Critical Contrast

The PMI Group (OTCMKTS:PPMIQ) and Global Indemnity Group (NASDAQ:GBLI) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Earnings & Valuation

This table compares The PMI Group and Global Indemnity Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The PMI Group	N/A	N/A	N/A	N/A	N/A
Global Indemnity Group	$450.10 million	0.88	$25.33 million	$2.35	11.52

Global Indemnity Group has higher revenue and earnings than The PMI Group.

Analyst Recommendations

This is a breakdown of recent recommendations for The PMI Group and Global Indemnity Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The PMI Group	0	0	0	0	0.00
Global Indemnity Group	0	1	0	0	2.00

Given The PMI Group’s higher probable upside, equities research analysts clearly believe The PMI Group is more favorable than Global Indemnity Group.

Profitability

This table compares The PMI Group and Global Indemnity Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The PMI Group	N/A	N/A	N/A
Global Indemnity Group	7.50%	5.56%	2.28%

Institutional and Insider Ownership

37.4% of Global Indemnity Group shares are owned by institutional investors. 47.1% of Global Indemnity Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Global Indemnity Group beats The PMI Group on 7 of the 8 factors compared between the two stocks.

About The PMI Group

The PMI Group, Inc. (TPG) through its subsidiary PMI Mortgage Insurance Co. (MIC), and its affiliated companies (collectively PMI), provides residential mortgage insurance in the United States. During the year ended December 31, 2009, the Company operated in three business segments: United States Mortgage Insurance Operations, International Operations and Corporate and Other. As a United States residential mortgage insurer, PMI offers a variety of mortgage insurance products to meet the capital and credit risk mitigation needs of its customers. In November 2011, the Company announced that it has filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.

About Global Indemnity Group

Global Indemnity Group, LLC, through its subsidiaries, provides specialty property and casualty insurance, and reinsurance products worldwide. It operates in two segments, Penn-America and Non-Core Operations. The company distributes property and general liability products for small commercial businesses through a network of wholesale general agents; and property and general liability niche products through program administrators with specific binding authority. It also provides third-party treaty reinsurance for casualty insurance and reinsurance companies through brokers/intermediaries. In addition, the company offers property and general liability products distributed using company administered systems, and includes collectibles, digital direct-to-consumer insurance coverage for owners of collections; and VacantExpress, insurance coverage for owners of properties under construction, renovation, vacant, or rented, distributed through wholesale general agents and retail agents. Global Indemnity Group, LLC was founded in 2003 and is headquartered in Bala Cynwyd, Pennsylvania.