Enact Holdings Inc (ACT)vsEssent Group Ltd (ESNT)
ACT
Enact Holdings Inc
$40.30
-0.15%
FINANCIAL SERVICES · Cap: $5.83B
ESNT
Essent Group Ltd
$57.95
+0.94%
FINANCIAL SERVICES · Cap: $5.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Essent Group Ltd generates 2% more annual revenue ($1.26B vs $1.24B). ESNT leads profitability with a 54.7% profit margin vs 54.6%. ESNT trades at a lower P/E of 8.3x. ESNT earns a higher WallStSmart Score of 67/100 (B-).
ACT
Buy56
out of 100
Grade: C
ESNT
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+69.5%
Fair Value
$142.83
Current Price
$40.30
$102.53 discount
Margin of Safety
-15.2%
Fair Value
$56.86
Current Price
$57.95
$1.09 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 55 of every $100 in revenue as profit
Strong operational efficiency at 75.3%
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 55 of every $100 in revenue as profit
Strong operational efficiency at 61.7%
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Areas to Watch
3.6% revenue growth
Weak financial health signals
0.9% earnings growth
Weak financial health signals
Revenue declined 0.8%
Comparative Analysis Report
WallStSmart ResearchBull 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 : ESNT
The strongest argument for ESNT centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 54.7% and operating margin at 61.7%. PEG of 0.84 suggests the stock is reasonably priced for its growth.
Bear Case : ACT
The primary concerns for ACT are Revenue Growth, Piotroski F-Score.
Bear Case : ESNT
The primary concerns for ESNT are EPS Growth, Piotroski F-Score, Revenue Growth.
Key Dynamics to Monitor
ACT profiles as a value stock while ESNT is a declining play — different risk/reward profiles.
ESNT carries more volatility with a beta of 0.87 — expect wider price swings.
ACT is growing revenue faster at 3.6% — sustainability is the question.
ESNT generates stronger free cash flow (228M), providing more financial flexibility.
Bottom Line
ESNT scores higher overall (67/100 vs 56/100), backed by strong 54.7% 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 →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.
Compare with Other INSURANCE - SPECIALTY Stocks
Want to dig deeper into these stocks?