Triad Guaranty (OTCMKTS:TGIC) and Assured Guaranty (NYSE:AGO) Head to Head Review

Assured Guaranty (NYSE:AGO) and Triad Guaranty (OTCMKTS:TGIC) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.

Analyst Recommendations

This is a breakdown of current recommendations for Assured Guaranty and Triad Guaranty, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Assured Guaranty 0 0 1 0 3.00
Triad Guaranty 0 0 0 0 N/A

Assured Guaranty currently has a consensus price target of $51.00, suggesting a potential upside of 60.68%. Given Assured Guaranty’s higher possible upside, research analysts clearly believe Assured Guaranty is more favorable than Triad Guaranty.

Profitability

This table compares Assured Guaranty and Triad Guaranty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Assured Guaranty 34.01% 4.42% 1.99%
Triad Guaranty N/A N/A N/A

Risk and Volatility

Assured Guaranty has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Triad Guaranty has a beta of 1.95, indicating that its share price is 95% more volatile than the S&P 500.

Insider and Institutional Ownership

81.1% of Assured Guaranty shares are held by institutional investors. 3.8% of Assured Guaranty shares are held by insiders. Comparatively, 23.3% of Triad Guaranty shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Assured Guaranty and Triad Guaranty’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Assured Guaranty $963.00 million 2.66 $402.00 million N/A N/A
Triad Guaranty N/A N/A N/A N/A N/A

Assured Guaranty has higher revenue and earnings than Triad Guaranty.

Summary

Assured Guaranty beats Triad Guaranty on 7 of the 9 factors compared between the two stocks.

Assured Guaranty Company Profile

Assured Guaranty Ltd., through its subsidiaries, provides credit protection products to public finance, infrastructure, and structured finance markets in the United States and internationally. The company operates in two segments, Insurance and Asset Management. It offers financial guaranty insurance that protects holders of debt instruments and other monetary obligations from defaults in scheduled payments. The company insures and reinsures various debt obligations, including bonds issued by the United States state, governmental authorities or municipal governmental authorities; and notes issued to finance infrastructure projects. It also insures and reinsures various types of the U.S. public finance obligations, such as general obligation, tax-backed, municipal utility, transportation, healthcare, higher education, infrastructure, housing revenue, investor-owned utility, renewable energy, and other public finance bonds; non-U.S. public finance obligations comprising regulated utilities, infrastructure finance, sovereign and sub-sovereign, renewable energy bonds, pooled infrastructure, and other public finance obligations; and the U.S. and non-U.S. Structured finance obligations, including residential mortgage-backed securities, insurance securitization obligations, consumer receivables securities, pooled corporate obligations, financial products, and other structured finance securities. In addition, the company provides asset management services comprising investment advisory services, including management of collateralized loan obligations and opportunity funds to outside investors. It markets its financial guaranty insurance directly to issuers and underwriters of public finance and structured finance securities, as well as to investors in such obligations. Assured Guaranty Ltd. was founded in 2003 and is headquartered in Hamilton, Bermuda.

Triad Guaranty Company Profile

Triad Guaranty Inc., through its subsidiary, Triad Guaranty Insurance Corporation, operates mortgage guaranty insurance business in run-off under two corrective orders issued by the Illinois Department of Insurance. The company was founded in 1987 and is based in Birmingham, Alabama. On June 3, 2013, Triad Guaranty Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

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