WallStSmart

Enact Holdings Inc (ACT)vsAssured Guaranty Ltd (AGO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Enact Holdings Inc generates 49% more annual revenue ($1.24B vs $832.00M). AGO leads profitability with a 60.5% profit margin vs 54.6%. AGO trades at a lower P/E of 7.9x. AGO earns a higher WallStSmart Score of 67/100 (B-).

ACT

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 8.5Value: 8.3Quality: 5.8
Piotroski: 3/9

AGO

Strong Buy

67

out of 100

Grade: B-

Growth: 4.0Profit: 6.5Value: 10.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ACTUndervalued (+69.5%)

Margin of Safety

+69.5%

Fair Value

$142.83

Current Price

$40.30

$102.53 discount

UndervaluedFair: $142.83Overvalued
AGOUndervalued (+82.0%)

Margin of Safety

+82.0%

Fair Value

$480.17

Current Price

$81.48

$398.69 discount

UndervaluedFair: $480.17Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACT5 strengths · Avg: 9.8/10
P/E RatioValuation
8.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
54.6%10/10

Keeps 55 of every $100 in revenue as profit

Operating MarginProfitability
75.3%10/10

Strong operational efficiency at 75.3%

Debt/EquityHealth
0.149/10

Conservative balance sheet, low leverage

AGO4 strengths · Avg: 10.0/10
PEG RatioValuation
0.3310/10

Growing faster than its price suggests

P/E RatioValuation
7.9x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Profit MarginProfitability
60.5%10/10

Keeps 61 of every $100 in revenue as profit

Areas to Watch

ACT2 concerns · Avg: 3.5/10
Revenue GrowthGrowth
3.6%4/10

3.6% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

AGO1 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-37.4%2/10

Revenue declined 37.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : ACT

The strongest argument for ACT centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 54.6% and operating margin at 75.3%.

Bull Case : AGO

The strongest argument for AGO centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 60.5% and operating margin at 12.1%. PEG of 0.33 suggests the stock is reasonably priced for its growth.

Bear Case : ACT

The primary concerns for ACT are Revenue Growth, Piotroski F-Score.

Bear Case : AGO

The primary concerns for AGO are Revenue Growth.

Key Dynamics to Monitor

ACT profiles as a value stock while AGO is a declining play — different risk/reward profiles.

AGO carries more volatility with a beta of 0.93 — expect wider price swings.

ACT is growing revenue faster at 3.6% — sustainability is the question.

ACT generates stronger free cash flow (186M), providing more financial flexibility.

Bottom Line

AGO scores higher overall (67/100 vs 56/100), backed by strong 60.5% margins. ACT offers better value entry with a 69.5% margin of safety. Both earn "Strong Buy" and "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.

Enact Holdings Inc

FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA

Enact Holdings Inc (ACT) is a leading provider of private mortgage insurance and risk management solutions, primarily for the U.S. housing sector. The company is dedicated to facilitating homeownership and promoting sustainable housing practices, leveraging its robust capital resources and strategic partnerships to address market challenges. Enact’s commitment to innovation and technology enables it to adapt swiftly to industry changes, positioning the company to capitalize on growth opportunities while enhancing the capabilities of lenders and effectively managing risk.

Visit Website →

Assured Guaranty Ltd

FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA

Assured Guaranty Ltd., provides credit protection products to the public finance, infrastructure and structured finance markets in the United States and internationally. The company is headquartered in Hamilton, Bermuda.

Want to dig deeper into these stocks?