Nelnet vs Radian

This page compares Nelnet Inc and Radian Group Inc, detailing their business models, financial performance, and market context in an accessible way. It presents similarities and differences to help readers understand how each company operates, competes, and positions itself within the wider financial services sector. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

NNI

Metric

RDN

$4.68B

Market Cap

$4.50B

6.19%

Potential Profit

16.95%

Hold

Analyst Rating

Hold

Investment Analysis

Nelnet

NNI

Pros

Nelnet maintains a diversified business model with stable revenue streams from student loan servicing and payment processing.
The company has demonstrated consistent profitability and strong cash flow generation in recent quarters.
Nelnet benefits from a relatively low debt burden and solid liquidity, supporting financial flexibility.

Considerations

Nelnet's earnings are sensitive to changes in interest rates and regulatory developments affecting student lending.
Growth prospects may be limited by market saturation in core segments and increasing competition.
The company faces potential risks from shifts in government policy regarding student loan forgiveness or refinancing.

Radian

RDN

Pros

Radian reported strong net income and a high return on equity, reflecting robust core mortgage insurance performance.
The acquisition of Inigo and divestiture of non-core assets position Radian for transformation into a global multi-line specialty insurer.
Book value per share has grown significantly year-over-year, indicating solid balance sheet strength.

Considerations

Radian's earnings have declined slightly year-on-year, reflecting headwinds in the mortgage insurance sector.
The company's strategic shift involves execution risk and integration challenges with the Inigo acquisition.
Radian remains exposed to cyclical housing market trends and potential regulatory changes in insurance.

About The Companies

Nelnet (NNI)

Nelnet is a diversified American company with a significant footprint in financial services and education technology. While it started with a focus on student loan servicing, it has expanded considerably. Today, its business is split into several key areas: servicing student and consumer loans, providing technology and payment processing services for schools and businesses, managing a portfolio of loan assets, and operating its own online bank. This multi-faceted model means Nelnet isn't reliant on just one stream of income. For investors, understanding these different segments—from loan systems and EdTech to asset management and banking—is key to appreciating the company's overall strategy and market position. It aims to provide a broad range of services that support customers throughout their educational and financial journeys.

Radian (RDN)

Radian Group Inc. (RDN) is a US-based mortgage insurance and real-estate services firm that underwrites mortgage default risk and offers related risk-management solutions. Investors should know that Radian’s earnings come from premium income, investment returns on capital and the company’s ability to manage claims and reserves. The business tends to benefit from stable or rising home prices and strong employment, which reduce claim rates, while a downturn in housing or weakening borrower credit can raise losses. Radian is also sensitive to interest-rate moves because they influence mortgage origination and refinancing activity. Capitalisation and regulatory capital requirements affect how much new business the group can write and how it returns capital to shareholders. With a market capitalisation of about $4.6bn, Radian sits in the mid‑cap financial space; it may appeal to investors seeking exposure to the mortgage finance cycle, but suitability depends on risk tolerance, time horizon and portfolio context. This is general information, not personalised financial advice.

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Nelnet vs Radian

Comparison Snapshot

Investment Analysis

Nelnet

Pros

Considerations

Radian

Pros

Considerations

About The Companies

Which Baskets Do They Appear In?

Which Baskets Do They Appear In?

Buy NNI or RDN in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

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Nelnet vs Lazard

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Frequently asked questions

What is the main difference in business focus between Nelnet and Radian?

How can I compare profitability between the two stocks using the information provided?

What does ‘diversified business model’ mean in Nelnet’s case?

What are the key risk factors that investors should consider for Nelnet?

What are the notable positives for Radian as an investment, in the context provided?

What are the main headwinds for Radian to consider when evaluating the stock?

How do the market contexts differ for Nelnet and Radian?

What does steady cash flow mean for a stock like Nelnet?

How should a beginner interpret earnings versus book value growth when comparing these stocks?

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Comparison Snapshot

About The Companies