First American Corporation (FAF)vsRadian Group Inc (RDN)
FAF
First American Corporation
$58.36
+0.43%
FINANCIAL SERVICES · Cap: $5.92B
RDN
Radian Group Inc
$32.97
+0.33%
FINANCIAL SERVICES · Cap: $4.48B
Smart Verdict
WallStSmart Research — data-driven comparison
First American Corporation generates 523% more annual revenue ($7.45B vs $1.20B). RDN leads profitability with a 48.7% profit margin vs 8.3%. RDN appears more attractively valued with a PEG of 0.76. RDN earns a higher WallStSmart Score of 76/100 (B+).
FAF
Strong Buy72
out of 100
Grade: B
RDN
Strong Buy76
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+77.1%
Fair Value
$280.80
Current Price
$58.36
$222.44 discount
Margin of Safety
+74.3%
Fair Value
$133.10
Current Price
$32.97
$100.13 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Revenue surging 21.6% year-over-year
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 49 of every $100 in revenue as profit
Strong operational efficiency at 76.7%
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
1.9% earnings growth
Distress zone — elevated risk
2.7% revenue growth
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : FAF
The strongest argument for FAF centers on P/E Ratio, Price/Book, Revenue Growth. Revenue growth of 21.6% 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 48.7% and operating margin at 76.7%. PEG of 0.76 suggests the stock is reasonably priced for its growth.
Bear Case : FAF
The primary concerns for FAF are PEG Ratio, EPS Growth, Altman Z-Score.
Bear Case : RDN
The primary concerns for RDN are Revenue Growth, Piotroski F-Score.
Key Dynamics to Monitor
FAF profiles as a growth stock while RDN is a value play — different risk/reward profiles.
FAF carries more volatility with a beta of 1.26 — expect wider price swings.
FAF is growing revenue faster at 21.6% — sustainability is the question.
RDN generates stronger free cash flow (406M), providing more financial flexibility.
Bottom Line
RDN scores higher overall (76/100 vs 72/100), backed by strong 48.7% margins. FAF offers better value entry with a 77.1% margin of safety. 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.
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