American Overseas Group (OTCMKTS:AOREF) and NMI (OTCMKTS:NMIH) Critical Analysis

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for American Overseas Group and NMI, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Overseas Group 0 0 0 0 N/A
NMI 0 2 10 0 2.83

NMI has a consensus price target of $25.00, suggesting a potential upside of 27.29%. Given NMI’s higher possible upside, analysts plainly believe NMI is more favorable than American Overseas Group.

Volatility & Risk

American Overseas Group has a beta of -0.32, indicating that its share price is 132% less volatile than the S&P 500. Comparatively, NMI has a beta of 1.95, indicating that its share price is 95% more volatile than the S&P 500.

Valuation & Earnings

This table compares American Overseas Group and NMI’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Overseas Group $15.01 million 0.93 -$3.18 million N/A N/A
NMI $378.77 million 4.40 $171.96 million $2.62 7.50

NMI has higher revenue and earnings than American Overseas Group.

Institutional and Insider Ownership

89.8% of NMI shares are owned by institutional investors. 3.8% of NMI shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares American Overseas Group and NMI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Overseas Group N/A N/A N/A
NMI 43.85% 18.33% 12.13%

Summary

NMI beats American Overseas Group on 11 of the 11 factors compared between the two stocks.

American Overseas Group Company Profile

American Overseas Group Limited, through its subsidiaries, provides property/casualty insurance and reinsurance products and services in Bermuda, Barbados, and the United States. It offers non-standard auto insurance products; and specialty risk transfer and management services. The company was formerly known as RAM Holdings Ltd. and changed its name to American Overseas Group Limited in December 2011. American Overseas Group Limited was founded in 1998 and is based in Hamilton, Bermuda.

NMI Company Profile

NMI Holdings, Inc., through its subsidiaries, provides private mortgage guaranty insurance services in the United States. The company offers mortgage insurance; reinsurance on loans; 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 founded in 2011 and is headquartered in Emeryville, California.

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