Head to Head Contrast: Atlas Financial (OTCMKTS:AFHIF) versus NMI (NASDAQ:NMIH)

Atlas Financial (OTCMKTS:AFHIF) and NMI (NASDAQ:NMIH) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Institutional & Insider Ownership

94.1% of NMI shares are owned by institutional investors. 14.4% of Atlas Financial shares are owned by company insiders. Comparatively, 3.0% of NMI shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Atlas Financial and NMI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlas Financial	0	0	0	0	0.00
NMI	0	1	4	0	2.80

NMI has a consensus target price of $43.00, indicating a potential upside of 15.34%. Given NMI’s stronger consensus rating and higher probable upside, analysts clearly believe NMI is more favorable than Atlas Financial.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Atlas Financial	N/A	N/A	N/A
NMI	55.05%	15.78%	10.64%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlas Financial	N/A	N/A	N/A	N/A	N/A
NMI	$706.44 million	4.01	$388.93 million	$4.91	7.59

NMI has higher revenue and earnings than Atlas Financial.

Summary

NMI beats Atlas Financial on 8 of the 9 factors compared between the two stocks.

About Atlas Financial

Atlas Financial Holdings, Inc., through its subsidiary, Anchor Group Management, Inc., engages in generating, underwriting, and servicing of commercial automobile insurance in the United States. The company's automobile insurance products provide insurance coverage in three areas, including liability, accident benefits, and physical damage. It focuses on the light commercial automobile sector, including taxi cabs, non-emergency paratransit, limousine, livery, and business autos. It distributes its insurance products through a network of independent retail agents. Atlas Financial Holdings, Inc. was founded in 2009 and is headquartered in Schaumburg, Illinois.

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.