WallStSmart

First American Corporation (FAF)vsRadian Group Inc (RDN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

First American Corporation generates 462% more annual revenue ($7.71B vs $1.37B). RDN leads profitability with a 41.0% profit margin vs 8.7%. RDN appears more attractively valued with a PEG of 0.76. RDN earns a higher WallStSmart Score of 78/100 (B+).

FAF

Strong Buy

68

out of 100

Grade: B-

Growth: 6.7Profit: 6.0Value: 5.7Quality: 6.0
Piotroski: 5/9

RDN

Strong Buy

78

out of 100

Grade: B+

Growth: 5.3Profit: 8.0Value: 7.7Quality: 7.0
Piotroski: 5/9Altman Z: 3.07

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FAF4 strengths · Avg: 9.5/10
P/E RatioValuation
10.1x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

EPS GrowthGrowth
70.4%10/10

Earnings expanding 70.4% YoY

Revenue GrowthGrowth
16.2%8/10

16.2% revenue growth

RDN6 strengths · Avg: 10.0/10
P/E RatioValuation
8.1x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
41.0%10/10

Keeps 41 of every $100 in revenue as profit

Operating MarginProfitability
46.6%10/10

Strong operational efficiency at 46.6%

Revenue GrowthGrowth
58.8%10/10

Revenue surging 58.8% year-over-year

Altman Z-ScoreHealth
3.0710/10

Safe zone — low bankruptcy risk

Areas to Watch

FAF2 concerns · Avg: 2.0/10
PEG RatioValuation
2.982/10

Expensive relative to growth rate

Free Cash FlowQuality
$-32.70M2/10

Negative free cash flow — burning cash

RDN1 concerns · Avg: 2.0/10
EPS GrowthGrowth
-9.0%2/10

Earnings declined 9.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : FAF

The strongest argument for FAF centers on P/E Ratio, Price/Book, EPS Growth. Revenue growth of 16.2% demonstrates continued momentum.

Bull Case : RDN

The strongest argument for RDN centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 41.0% and operating margin at 46.6%. Revenue growth of 58.8% demonstrates continued momentum.

Bear Case : FAF

The primary concerns for FAF are PEG Ratio, Free Cash Flow.

Bear Case : RDN

The primary concerns for RDN are EPS Growth.

Key Dynamics to Monitor

FAF carries more volatility with a beta of 1.26 — expect wider price swings.

RDN is growing revenue faster at 58.8% — sustainability is the question.

RDN generates stronger free cash flow (284M), providing more financial flexibility.

Monitor INSURANCE - SPECIALTY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RDN scores higher overall (78/100 vs 68/100), backed by strong 41.0% margins and 58.8% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

First American Corporation

FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA

First American Financial Corporation, provides financial services. The company is headquartered in Santa Ana, California.

Radian Group Inc

FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA

Radian Group Inc. is engaged in the mortgage and real estate services business in the United States. The company is headquartered in Philadelphia, Pennsylvania.

Want to dig deeper into these stocks?