WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 8878% more annual revenue ($63.42B vs $706.44M). NMIH leads profitability with a 55.0% profit margin vs 33.1%. 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: 5.0

RY

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 5.7Quality: 5.0

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NMIH4 strengths · Avg: 10.0/10
P/E RatioValuation
8.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Profit MarginProfitability
55.0%10/10

Keeps 55 of every $100 in revenue as profit

Operating MarginProfitability
71.0%10/10

Strong operational efficiency at 71.0%

RY6 strengths · Avg: 9.3/10
Market CapQuality
$250.25B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.1%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
46.2%10/10

Strong operational efficiency at 46.2%

Free Cash FlowQuality
$37.30B10/10

Generating 37.3B in free cash flow

P/E RatioValuation
16.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Areas to Watch

NMIH1 concerns · Avg: 4.0/10
PEG RatioValuation
1.664/10

Expensive relative to growth rate

RY1 concerns · Avg: 4.0/10
PEG RatioValuation
2.304/10

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 55.0% and operating margin at 71.0%.

Bull Case : RY

The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.1% and operating margin at 46.2%.

Bear Case : NMIH

The primary concerns for NMIH are PEG Ratio.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Key Dynamics to Monitor

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

NMIH is growing revenue faster at 8.5% — sustainability is the question.

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

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

Bottom Line

NMIH scores higher overall (71/100 vs 68/100), backed by strong 55.0% margins. 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.

Want to dig deeper into these stocks?