WallStSmart

NMI Holdings Inc (NMIH)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 9089% more annual revenue ($67.15B vs $730.78M). NMIH leads profitability with a 54.1% profit margin vs 33.9%. NMIH appears more attractively valued with a PEG of 1.66. NMIH earns a higher WallStSmart Score of 71/100 (B).

NMIH

Strong Buy

71

out of 100

Grade: B

Growth: 6.7Profit: 9.0Value: 6.3Quality: 6.0
Piotroski: 2/9Altman Z: 2.75

RY

Buy

63

out of 100

Grade: C+

Growth: 7.3Profit: 8.0Value: 5.0Quality: 5.0
Piotroski: 4/9Altman Z: -0.50

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NMIH5 strengths · Avg: 9.8/10
P/E RatioValuation
8.7x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Profit MarginProfitability
54.1%10/10

Keeps 54 of every $100 in revenue as profit

Operating MarginProfitability
76.7%10/10

Strong operational efficiency at 76.7%

Debt/EquityHealth
0.159/10

Conservative balance sheet, low leverage

RY4 strengths · Avg: 9.5/10
Market CapQuality
$291.55B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.9%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
46.4%10/10

Strong operational efficiency at 46.4%

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

NMIH2 concerns · Avg: 3.5/10
PEG RatioValuation
1.664/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

RY4 concerns · Avg: 2.3/10
PEG RatioValuation
2.354/10

Expensive relative to growth rate

Free Cash FlowQuality
$-28.67B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.502/10

Distress zone — elevated risk

Debt/EquityHealth
2.881/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : NMIH

The strongest argument for NMIH centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 54.1% and operating margin at 76.7%.

Bull Case : RY

The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.9% and operating margin at 46.4%.

Bear Case : NMIH

The primary concerns for NMIH are PEG Ratio, Piotroski F-Score.

Bear Case : RY

The primary concerns for RY are PEG Ratio, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.88 is elevated, increasing financial risk.

Key Dynamics to Monitor

RY carries more volatility with a beta of 0.92 — expect wider price swings.

RY is growing revenue faster at 8.9% — sustainability is the question.

NMIH generates stronger free cash flow (140M), providing more financial flexibility.

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

Bottom Line

NMIH scores higher overall (71/100 vs 63/100), backed by strong 54.1% margins. Both earn "Strong Buy" and "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.

NMI Holdings Inc

FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA

NMI Holdings, Inc. provides private home equity insurance services in the United States. The company is headquartered in Emeryville, California.

Royal Bank of Canada

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.

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