WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 9070% more annual revenue ($65.72B vs $716.67M). NMIH leads profitability with a 53.8% profit margin vs 33.7%. NMIH appears more attractively valued with a PEG of 1.66. RY earns a higher WallStSmart Score of 70/100 (B-).

NMIH

Strong Buy

69

out of 100

Grade: B-

Growth: 6.0Profit: 9.0Value: 6.3Quality: 5.3
Piotroski: 2/9

RY

Strong Buy

70

out of 100

Grade: B-

Growth: 8.7Profit: 8.0Value: 4.3Quality: 5.0

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NMIH5 strengths · Avg: 10.0/10
P/E RatioValuation
7.5x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
53.8%10/10

Keeps 54 of every $100 in revenue as profit

Operating MarginProfitability
72.0%10/10

Strong operational efficiency at 72.0%

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

RY6 strengths · Avg: 9.3/10
Market CapQuality
$277.29B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.7%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
45.3%10/10

Strong operational efficiency at 45.3%

Free Cash FlowQuality
$37.30B10/10

Generating 37.3B in free cash flow

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.1%8/10

16.1% revenue growth

Areas to Watch

NMIH3 concerns · Avg: 3.7/10
PEG RatioValuation
1.664/10

Expensive relative to growth rate

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

RY1 concerns · Avg: 2.0/10
PEG RatioValuation
2.532/10

Expensive relative to growth rate

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 53.8% and operating margin at 72.0%.

Bull Case : RY

The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.7% and operating margin at 45.3%. Revenue growth of 16.1% demonstrates continued momentum.

Bear Case : NMIH

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

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Key Dynamics to Monitor

NMIH profiles as a mature stock while RY is a growth play — different risk/reward profiles.

RY carries more volatility with a beta of 0.94 — expect wider price swings.

RY is growing revenue faster at 16.1% — sustainability is the question.

RY generates stronger free cash flow (37.3B), providing more financial flexibility.

Bottom Line

RY scores higher overall (70/100 vs 69/100), backed by strong 33.7% margins and 16.1% 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.

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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