Radian Group (NYSE:RDN) versus Corebridge Financial (NYSE:CRBG) Head-To-Head Comparison

Radian Group (NYSE:RDN) and Corebridge Financial (NYSE:CRBG) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Profitability

This table compares Radian Group and Corebridge Financial’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%
Corebridge Financial	-1.80%	22.06%	0.74%

Dividends

Radian Group pays an annual dividend of $1.02 per share and has a dividend yield of 2.9%. Corebridge Financial pays an annual dividend of $0.96 per share and has a dividend yield of 2.9%. Radian Group pays out 25.7% of its earnings in the form of a dividend. Corebridge Financial pays out -157.4% 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 increased its dividend for 6 consecutive years and Corebridge Financial has increased its dividend for 1 consecutive years. Radian Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

95.3% of Radian Group shares are held by institutional investors. Comparatively, 98.3% of Corebridge Financial shares are held by institutional investors. 2.2% of Radian Group shares are held by company insiders. Comparatively, 0.3% of Corebridge Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Radian Group and Corebridge Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Radian Group	0	4	0	0	2.00
Corebridge Financial	0	3	8	0	2.73

Radian Group presently has a consensus price target of $37.00, indicating a potential upside of 5.34%. Corebridge Financial has a consensus price target of $40.80, indicating a potential upside of 21.37%. Given Corebridge Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Corebridge Financial is more favorable than Radian Group.

Valuation & Earnings

This table compares Radian Group and Corebridge Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Radian Group	$1.29 billion	3.69	$604.44 million	$3.97	8.85
Corebridge Financial	$19.58 billion	0.92	$2.23 billion	($0.61)	-55.11

Corebridge Financial has higher revenue and earnings than Radian Group. Corebridge Financial 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 & Risk

Radian Group has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Corebridge Financial has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.

Summary

Corebridge Financial beats Radian Group on 9 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 Corebridge Financial

Corebridge Financial, Inc. provides retirement solutions and insurance products in the United States. The company operates through Individual Retirement, Group Retirement, Life Insurance, and Institutional Markets segments. The Individual Retirement segment provides fixed annuities, fixed index annuities, variable annuities, and retail mutual funds. The Group Retirement segment offers record-keeping services, plan administration and compliance services, and financial planning and advisory solutions to employer-defined contribution plans and their participants, as well as proprietary and non-proprietary annuities, advisory services, and brokerage products. The Life Insurance segment offers term life and universal life insurance in the United States, as well as issues individual life, whole life, and group life insurance in the United Kingdom; and distributes medical insurance in Ireland. The Institutional Markets segment provides stable value wraps, structured settlement and pension risk transfer annuities, corporate and bank owned life insurance, private placement variable universal life and annuities products, and guaranteed investment contracts. The company was formerly known as SAFG Retirement Services, Inc. Corebridge Financial, Inc. was incorporated in 1998 and is headquartered in Houston, Texas. The company operates as a subsidiary of American International Group, Inc.