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MGIC Investment Corp. Message Board

  • lookingforatenbagger lookingforatenbagger Jul 30, 2013 4:35 PM Flag

    Which a better investment MTG or RDN?

     

    Let's look at the numbers:

    Statistic..................................RND..................MTG
    Price/Sales.............................$3.28..................$2.02
    2014 PE....................................15........................28
    2014 earnings/share..............$0.95....................$0.27 just raised
    Total Cash..............................$5.4B..................$0.6B
    Cash/share.............................$31.24.................$1.87
    Total Debt...............................$1.0B..................$1.3B
    Outstanding shares................172M..................338M

    RDN has a lower (realistic) 2014 PE with FY2016 earnings per share predicted to be THREE TIMES HIGHER
    They have 9 times MORE cash with about the same total debt.
    BUT RDN Has a little more than 1/2 as many shares outstanding. MTG has to earn $1 for every $0.51 RDN earns to stay even. No wonder the analyst predict MTG's earnings per share will be 1/3 of RDN's..

    Add in RDNs larger footprint, larger NIW, their larger loss reserves with a higher percentage of post 2009 insurance in force, obviously superior management and MTG’s unresolved issues with Countrywide the choice is obvious to me.

    Sentiment: Sell

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MTG
7.21-0.02(-0.28%)May 2 4:01 PMEDT