WallStSmart

Enact Holdings Inc (ACT)vsEssent Group Ltd (ESNT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Essent Group Ltd generates 3% more annual revenue ($1.28B vs $1.24B). ACT leads profitability with a 54.5% profit margin vs 53.6%. ESNT trades at a lower P/E of 8.3x. ESNT earns a higher WallStSmart Score of 73/100 (B).

ACT

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 6.7Quality: 7.8
Piotroski: 4/9

ESNT

Strong Buy

73

out of 100

Grade: B

Growth: 6.0Profit: 8.0Value: 7.7Quality: 8.5
Piotroski: 2/9Altman Z: 4.50

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACT5 strengths · Avg: 9.8/10
P/E RatioValuation
9.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
54.5%10/10

Keeps 55 of every $100 in revenue as profit

Operating MarginProfitability
72.3%10/10

Strong operational efficiency at 72.3%

Debt/EquityHealth
0.149/10

Conservative balance sheet, low leverage

ESNT6 strengths · Avg: 10.0/10
P/E RatioValuation
8.3x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
53.6%10/10

Keeps 54 of every $100 in revenue as profit

Operating MarginProfitability
63.7%10/10

Strong operational efficiency at 63.7%

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.5010/10

Safe zone — low bankruptcy risk

Areas to Watch

ACT1 concerns · Avg: 4.0/10
Revenue GrowthGrowth
1.7%4/10

1.7% revenue growth

ESNT1 concerns · Avg: 3.0/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

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 54.5% and operating margin at 72.3%.

Bull Case : ESNT

The strongest argument for ESNT centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 53.6% and operating margin at 63.7%. PEG of 0.84 suggests the stock is reasonably priced for its growth.

Bear Case : ACT

The primary concerns for ACT are Revenue Growth.

Bear Case : ESNT

The primary concerns for ESNT are Piotroski F-Score.

Key Dynamics to Monitor

ACT profiles as a value stock while ESNT is a mature play — different risk/reward profiles.

ESNT carries more volatility with a beta of 0.78 — expect wider price swings.

ESNT is growing revenue faster at 5.8% — sustainability is the question.

ACT generates stronger free cash flow (224M), providing more financial flexibility.

Bottom Line

ESNT scores higher overall (73/100 vs 54/100), backed by strong 53.6% margins. 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 within the U.S. housing sector, dedicated to enhancing homeownership accessibility and supporting sustainable housing initiatives. The company's robust capital structure and strategic partnerships allow it to adeptly navigate market complexities while fostering innovation and technological advancements. By focusing on lender capabilities and proactive risk management, Enact is strategically positioned to capitalize on growth opportunities in a dynamic real estate landscape.

Visit Website →

Essent Group Ltd

FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA

Essent Group Ltd., provides private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. The company is headquartered in Hamilton, Bermuda.

Want to dig deeper into these stocks?