Ambac Financial Group (NYSE:AMBC – Get Free Report) and The PMI Group (OTCMKTS:PPMIQ – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Insider and Institutional Ownership
84.5% of Ambac Financial Group shares are held by institutional investors. 5.0% of Ambac Financial Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Ambac Financial Group and The PMI Group, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Ambac Financial Group | 0 | 0 | 2 | 1 | 3.33 |
The PMI Group | 0 | 0 | 0 | 0 | N/A |
Profitability
This table compares Ambac Financial Group and The PMI Group’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Ambac Financial Group | 19.27% | 10.79% | 1.83% |
The PMI Group | N/A | N/A | N/A |
Earnings & Valuation
This table compares Ambac Financial Group and The PMI Group”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Ambac Financial Group | $352.00 million | 1.46 | $4.00 million | $1.31 | 8.65 |
The PMI Group | N/A | N/A | N/A | N/A | N/A |
Ambac Financial Group has higher revenue and earnings than The PMI Group.
Summary
Ambac Financial Group beats The PMI Group on 8 of the 8 factors compared between the two stocks.
About Ambac Financial Group
Ambac Financial Group, Inc. operates as a financial services holding company. It operates three businesses: Specialty Property and Casualty Insurance, Insurance Distribution, and Legacy Financial Guarantee (LFG) Insurance. The Specialty Property and Casualty Insurance business provides specialty property and casualty program insurance with a focus commercial and personal liability risks. The Insurance Distribution business includes the specialty property and casualty insurance distribution business, which includes managing general agents and underwriters, insurance wholesalers, brokers, and other distribution businesses. The LFG Insurance business offers financial guarantee insurance policies that provide an unconditional and irrevocable guarantee, which protects the holder of a debt obligation against non-payment when due of the principal and interest on the obligations guaranteed. Ambac Financial Group, Inc. was incorporated in 1991 and is headquartered in New York, New York.
About The PMI Group
The PMI Group, Inc. (TPG) through its subsidiary PMI Mortgage Insurance Co. (MIC), and its affiliated companies (collectively PMI), provides residential mortgage insurance in the United States. During the year ended December 31, 2009, the Company operated in three business segments: United States Mortgage Insurance Operations, International Operations and Corporate and Other. As a United States residential mortgage insurer, PMI offers a variety of mortgage insurance products to meet the capital and credit risk mitigation needs of its customers. In November 2011, the Company announced that it has filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
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