NMI (NASDAQ:NMIH – Get Free Report) and Brookfield Wealth Solutions (NYSE:BNT – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.
Risk and Volatility
NMI has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, Brookfield Wealth Solutions has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500.
Profitability
This table compares NMI and Brookfield Wealth Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NMI | 53.11% | 14.87% | 10.03% |
| Brookfield Wealth Solutions | 0.15% | 0.10% | 0.01% |
Insider & Institutional Ownership
94.1% of NMI shares are owned by institutional investors. Comparatively, 20.3% of Brookfield Wealth Solutions shares are owned by institutional investors. 2.4% of NMI shares are owned by company insiders. Comparatively, 1.0% of Brookfield Wealth Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings for NMI and Brookfield Wealth Solutions, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NMI | 0 | 3 | 5 | 0 | 2.62 |
| Brookfield Wealth Solutions | 0 | 1 | 0 | 0 | 2.00 |
NMI presently has a consensus price target of $47.75, indicating a potential upside of 22.34%. Given NMI’s stronger consensus rating and higher probable upside, research analysts clearly believe NMI is more favorable than Brookfield Wealth Solutions.
Valuation & Earnings
This table compares NMI and Brookfield Wealth Solutions”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NMI | $706.44 million | 4.16 | $388.93 million | $5.08 | 7.68 |
| Brookfield Wealth Solutions | $11.63 billion | 1.20 | $766.00 million | $0.26 | 159.17 |
Brookfield Wealth Solutions has higher revenue and earnings than NMI. NMI is trading at a lower price-to-earnings ratio than Brookfield Wealth Solutions, indicating that it is currently the more affordable of the two stocks.
Summary
NMI beats Brookfield Wealth Solutions on 10 of the 14 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 Brookfield Wealth Solutions
Brookfield Wealth Solutions is focused on securing the financial futures of individuals and institutions through a range of retirement services, wealth protection products and tailored capital solutions. Through our operating subsidiaries, we offer a broad range of insurance products and services, including annuities, personal and commercial property and casualty insurance and life insurance.The company was incorporated in 2020 and is headquartered in Pembroke, Bermuda.
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