NMIH
NMI Holdings, Inc.
Insurance - Specialty
Market Cap$2.87B
5Y Perf.+145.1%
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Stock Comparison
NMIH vs PFSI
Revenue, margins, valuation, and 5-year total return — side by side.
PFSI
PennyMac Financial Services, Inc.
Financial - Mortgages
Market Cap$4.56B
5Y Perf.+160.5%
NMIH vs PFSI — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | NMIH | PFSI |
|---|---|---|
| Industry | Insurance - Specialty | Financial - Mortgages |
| Market Cap | $2.87B | $4.56B |
| Revenue (TTM) | $706M | $4.36B |
| Net Income (TTM) | $389M | $507M |
| Gross Margin | 91.8% | 91.4% |
| Operating Margin | 70.8% | 34.6% |
| Forward P/E | 7.3x | 7.1x |
| Total Debt | $417M | $23.06B |
| Cash & Equiv. | $44M | $302M |
NMIH vs PFSI — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
NMIH
PFSI
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| NMI Holdings, Inc. (NMIH) | 100 | 245.1 | +145.1% |
| PennyMac Financial … (PFSI) | 100 | 260.5 | +160.5% |
Price return only. Dividends and distributions are not included.
Quick Verdict: NMIH vs PFSI
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: NMIH leads in 4 of 7 categories, making it the strongest pick for profitability and margin quality and capital preservation and lower volatility. PennyMac Financial Services, Inc. is the stronger pick specifically for growth and revenue expansion and valuation and capital efficiency. As sector peers, any of these can serve as alternatives in the same allocation.
NMIH
NMI Holdings, Inc.
The Insurance Pick
NMIH carries the broadest edge in this set and is the clearest fit for income & stability and sleep-well-at-night.
- beta 0.45
- Lower volatility, beta 0.45, Low D/E 16.1%, current ratio 1.90x
- Beta 0.45, current ratio 1.90x
Best for: income & stability and sleep-well-at-night
PFSI
PennyMac Financial Services, Inc.
The Banking Pick
PFSI is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 173.8%, EPS growth 59.2%
- 6.0% 10Y total return vs NMIH's 478.5%
- 173.8% NII/revenue growth vs NMIH's 8.4%
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | PFSI | 173.8% NII/revenue growth vs NMIH's 8.4% |
| Value | PFSI | Lower P/E (7.1x vs 7.3x) |
| Quality / Margins | NMIH | 55.1% margin vs PFSI's 11.5% |
| Stability / Safety | NMIH | Beta 0.45 vs PFSI's 0.93, lower leverage |
| Dividends | PFSI | 1.3% yield; 2-year raise streak; the other pay no meaningful dividend |
| Momentum (1Y) | NMIH | +0.5% vs PFSI's -9.2% |
| Efficiency (ROA) | NMIH | 10.6% ROA vs PFSI's 1.8%, ROIC 13.5% vs 4.4% |
NMIH vs PFSI — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
FY 2025
NMIH vs PFSI — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLNMIHLAGGINGPFSI
PFSIPennyMac Financial Se…
1leads
NMIHNMI Holdings, Inc.
4leads
6 Total Categories
CATEGORYLEADERvs PFSIMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
NMIH5/5
Valuation MetricsMultiples, price ratios, and targets
PFSI3/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
NMIH9/9
Total Returns1Y, 3Y, 5Y total returns with dividends
NMIH4/6
Risk & VolatilityBeta, volatility, and downside exposure
NMIH2/2
Analyst OutlookRatings, price targets, and dividends
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Income & Cash Flow (Last 12 Months)
NMIH leads this category, winning 5 of 5 comparable metrics.
Income & Cash Flow (Last 12 Months)
PFSI is the larger business by revenue, generating $4.4B annually — 6.2x NMIH's $706M. NMIH is the more profitable business, keeping 55.1% of every revenue dollar as net income compared to PFSI's 11.5%.
| Metric | NMIHNMI Holdings, Inc. | PFSIPennyMac Financia… |
|---|---|---|
| RevenueTrailing 12 months | $706M | $4.4B |
| EBITDAEarnings before interest/tax | $516M | $1.0B |
| Net IncomeAfter-tax profit | $389M | $507M |
| Free Cash FlowCash after capex | $413M | -$3.8B |
| Gross MarginGross profit ÷ Revenue | +91.8% | +91.4% |
| Operating MarginEBIT ÷ Revenue | +70.8% | +34.6% |
| Net MarginNet income ÷ Revenue | +55.1% | +11.5% |
| FCF MarginFCF ÷ Revenue | +58.4% | -32.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +8.4% | — |
| EPS Growth (YoY)Latest quarter vs prior year | +12.1% | +7.7% |
NMIH leads this category, winning 5 of 5 comparable metrics.
Valuation Metrics
PFSI leads this category, winning 3 of 5 comparable metrics.
Valuation Metrics
At 7.7x trailing earnings, NMIH trades at a 19% valuation discount to PFSI's 9.4x P/E. On an enterprise value basis, NMIH's 6.1x EV/EBITDA is more attractive than PFSI's 18.1x.
| Metric | NMIHNMI Holdings, Inc. | PFSIPennyMac Financia… |
|---|---|---|
| Market CapShares × price | $2.9B | $4.6B |
| Enterprise ValueMkt cap + debt − cash | $3.2B | $27.3B |
| Trailing P/EPrice ÷ TTM EPS | 7.65x | 9.41x |
| Forward P/EPrice ÷ next-FY EPS est. | 7.34x | 7.08x |
| PEG RatioP/E ÷ EPS growth rate | 0.42x | — |
| EV / EBITDAEnterprise value multiple | 6.14x | 18.07x |
| Price / SalesMarket cap ÷ Revenue | 4.06x | 1.05x |
| Price / BookPrice ÷ Book value/share | 1.15x | 1.09x |
| Price / FCFMarket cap ÷ FCF | 6.95x | — |
PFSI leads this category, winning 3 of 5 comparable metrics.
Profitability & Efficiency
NMIH leads this category, winning 9 of 9 comparable metrics.
Profitability & Efficiency
NMIH delivers a 15.8% return on equity — every $100 of shareholder capital generates $16 in annual profit, vs $12 for PFSI. NMIH carries lower financial leverage with a 0.16x debt-to-equity ratio, signaling a more conservative balance sheet compared to PFSI's 5.35x. On the Piotroski fundamental quality scale (0–9), NMIH scores 5/9 vs PFSI's 4/9, reflecting solid financial health.
| Metric | NMIHNMI Holdings, Inc. | PFSIPennyMac Financia… |
|---|---|---|
| ROE (TTM)Return on equity | +15.8% | +12.0% |
| ROA (TTM)Return on assets | +10.6% | +1.8% |
| ROICReturn on invested capital | +13.5% | +4.4% |
| ROCEReturn on capital employed | +15.0% | +10.4% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 4 |
| Debt / EquityFinancial leverage | 0.16x | 5.35x |
| Net DebtTotal debt minus cash | $373M | $22.8B |
| Cash & Equiv.Liquid assets | $44M | $302M |
| Total DebtShort + long-term debt | $417M | $23.1B |
| Interest CoverageEBIT ÷ Interest expense | 18.55x | 0.96x |
NMIH leads this category, winning 9 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
NMIH leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in PFSI five years ago would be worth $15,353 today (with dividends reinvested), compared to $15,034 for NMIH. Over the past 12 months, NMIH leads with a +0.5% total return vs PFSI's -9.2%. The 3-year compound annual growth rate (CAGR) favors NMIH at 16.8% vs PFSI's 15.7% — a key indicator of consistent wealth creation.
| Metric | NMIHNMI Holdings, Inc. | PFSIPennyMac Financia… |
|---|---|---|
| YTD ReturnYear-to-date | -7.3% | -33.3% |
| 1-Year ReturnPast 12 months | +0.5% | -9.2% |
| 3-Year ReturnCumulative with dividends | +59.2% | +54.9% |
| 5-Year ReturnCumulative with dividends | +50.3% | +53.5% |
| 10-Year ReturnCumulative with dividends | +478.5% | +598.9% |
| CAGR (3Y)Annualised 3-year return | +16.8% | +15.7% |
NMIH leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
NMIH leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
NMIH is the less volatile stock with a 0.45 beta — it tends to amplify market swings less than PFSI's 0.93 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. NMIH currently trades 87.2% from its 52-week high vs PFSI's 54.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | NMIHNMI Holdings, Inc. | PFSIPennyMac Financia… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.45x | 0.93x |
| 52-Week HighHighest price in past year | $43.20 | $160.36 |
| 52-Week LowLowest price in past year | $34.84 | $82.67 |
| % of 52W HighCurrent price vs 52-week peak | +87.2% | +54.6% |
| RSI (14)Momentum oscillator 0–100 | 35.5 | 47.2 |
| Avg Volume (50D)Average daily shares traded | 435K | 601K |
NMIH leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates NMIH as "Buy" and PFSI as "Buy". Consensus price targets imply 63.5% upside for PFSI (target: $143) vs 15.5% for NMIH (target: $44). PFSI is the only dividend payer here at 1.33% yield — a key consideration for income-focused portfolios.
| Metric | NMIHNMI Holdings, Inc. | PFSIPennyMac Financia… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $43.50 | $143.00 |
| # AnalystsCovering analysts | 20 | 20 |
| Dividend YieldAnnual dividend ÷ price | — | +1.3% |
| Dividend StreakConsecutive years of raises | — | 2 |
| Dividend / ShareAnnual DPS | — | $1.16 |
| Buyback YieldShare repurchases ÷ mkt cap | +3.7% | +0.1% |
Insufficient data to determine a leader in this category.
Key Takeaway
NMIH leads in 4 of 6 categories (Income & Cash Flow, Profitability & Efficiency). PFSI leads in 1 (Valuation Metrics).
Best OverallNMI Holdings, Inc. (NMIH)Leads 4 of 6 categories
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NMIH vs PFSI: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is NMIH or PFSI a better buy right now?
For growth investors, PennyMac Financial Services, Inc.
(PFSI) is the stronger pick with 173. 8% revenue growth year-over-year, versus 8. 4% for NMI Holdings, Inc. (NMIH). NMI Holdings, Inc. (NMIH) offers the better valuation at 7. 7x trailing P/E (7. 3x forward), making it the more compelling value choice. Analysts rate NMI Holdings, Inc. (NMIH) a "Buy" — based on 20 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — NMIH or PFSI?
On trailing P/E, NMI Holdings, Inc.
(NMIH) is the cheapest at 7. 7x versus PennyMac Financial Services, Inc. at 9. 4x. On forward P/E, PennyMac Financial Services, Inc. is actually cheaper at 7. 1x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — NMIH or PFSI?
Over the past 5 years, PennyMac Financial Services, Inc.
(PFSI) delivered a total return of +53. 5%, compared to +50. 3% for NMI Holdings, Inc. (NMIH). Over 10 years, the gap is even starker: PFSI returned +598. 9% versus NMIH's +478. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — NMIH or PFSI?
By beta (market sensitivity over 5 years), NMI Holdings, Inc.
(NMIH) is the lower-risk stock at 0. 45β versus PennyMac Financial Services, Inc. 's 0. 93β — meaning PFSI is approximately 104% more volatile than NMIH relative to the S&P 500. On balance sheet safety, NMI Holdings, Inc. (NMIH) carries a lower debt/equity ratio of 16% versus 5% for PennyMac Financial Services, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — NMIH or PFSI?
By revenue growth (latest reported year), PennyMac Financial Services, Inc.
(PFSI) is pulling ahead at 173. 8% versus 8. 4% for NMI Holdings, Inc. (NMIH). On earnings-per-share growth, the picture is similar: PennyMac Financial Services, Inc. grew EPS 59. 2% year-over-year, compared to 11. 1% for NMI Holdings, Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — NMIH or PFSI?
NMI Holdings, Inc.
(NMIH) is the more profitable company, earning 55. 1% net margin versus 11. 5% for PennyMac Financial Services, Inc. — meaning it keeps 55. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NMIH leads at 70. 8% versus 34. 6% for PFSI. At the gross margin level — before operating expenses — NMIH leads at 91. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is NMIH or PFSI more undervalued right now?
On forward earnings alone, PennyMac Financial Services, Inc.
(PFSI) trades at 7. 1x forward P/E versus 7. 3x for NMI Holdings, Inc. — 0. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PFSI: 63. 5% to $143. 00.
08Which pays a better dividend — NMIH or PFSI?
In this comparison, PFSI (1.
3% yield) pays a dividend. NMIH does not pay a meaningful dividend and should not be held primarily for income.
09Is NMIH or PFSI better for a retirement portfolio?
For long-horizon retirement investors, PennyMac Financial Services, Inc.
(PFSI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 93), 1. 3% yield, +598. 9% 10Y return). Both have compounded well over 10 years (PFSI: +598. 9%, NMIH: +478. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between NMIH and PFSI?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: NMIH is a small-cap deep-value stock; PFSI is a small-cap high-growth stock. PFSI pays a dividend while NMIH does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(NMIH: 8.4% · PFSI: 173.8%)Net Margin>
%
(NMIH: 55.1% · PFSI: 11.5%)P/E Ratio<
x
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