Critical Comparison: Orix Corp Ads (NYSE:IX) and NMI (NASDAQ:NMIH)

Orix Corp Ads (NYSE:IX) and NMI (NASDAQ:NMIH) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for Orix Corp Ads and NMI, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orix Corp Ads	0	1	1	0	2.50
NMI	0	2	5	0	2.71

NMI has a consensus price target of $49.14, indicating a potential upside of 21.01%. Given NMI’s stronger consensus rating and higher probable upside, analysts plainly believe NMI is more favorable than Orix Corp Ads.

Risk & Volatility

Orix Corp Ads has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, NMI has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.

Earnings and Valuation

This table compares Orix Corp Ads and NMI”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orix Corp Ads	$22.13 billion	1.84	$2.95 billion	$3.62	10.14
NMI	$706.44 million	4.32	$388.93 million	$5.08	7.99

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

Profitability

This table compares Orix Corp Ads and NMI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orix Corp Ads	18.02%	13.11%	3.38%
NMI	54.10%	15.13%	10.21%

Insider & Institutional Ownership

1.7% of Orix Corp Ads shares are owned by institutional investors. Comparatively, 94.1% of NMI shares are owned by institutional investors. 0.1% of Orix Corp Ads shares are owned by insiders. Comparatively, 2.4% of NMI shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

NMI beats Orix Corp Ads on 10 of the 14 factors compared between the two stocks.

About Orix Corp Ads

ORIX Corporation provides diversified financial services in Japan, the United States, Asia, Europe, Australasia, and the Middle East. The company's Corporate Financial Services and Maintenance Leasing segment is involved in the finance and fee; leasing and rental of automobiles, electronic measuring instruments, and ICT-related equipment businesses; and provision of life insurance and environment and energy-related products and services. Its Real Estate segment develops, rents, and manages real estate properties; operates facilities; real estate asset management; manages residential condominiums and office building; and provides construction contracting, real estate brokerage, and real estate investment advisory services, as well as operates hotels and Japanese inns. The company's PE Investment and Concession segment engages in the private equity (PE) investment and concession businesses. Its Environment and Energy segment provides renewable energy; ESCO; retails electric power; sells solar panels and battery electricity storage systems; and recycling and waste management services, as well as generates solar power. The company's Insurance segment sells life insurance products through agents, banks, and other financial institutions, as well as face-to-face and online. Its Banking and Credit segment provides banking and consumer finance services. The company's Aircraft and Ships segment engages in the aircraft leasing and management, and ship-related finance and investment businesses. Its ORIX USA segment offers finance, investment, and asset management services. The company's ORIX Europe segment provides equity and fixed income asset management services. Its Asia and Australia segment offers finance and investment businesses. The company was formerly known as Orient Leasing Co., Ltd. and changed its name to ORIX Corporation in 1989. ORIX Corporation was incorporated in 1950 and is headquartered in Tokyo, Japan.

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.