Enact Holdings Inc (ACT)vsFirst American Corporation (FAF)
ACT
Enact Holdings Inc
$41.79
+2.05%
FINANCIAL SERVICES · Cap: $5.92B
FAF
First American Corporation
$67.02
+1.70%
FINANCIAL SERVICES · Cap: $6.70B
Smart Verdict
WallStSmart Research — data-driven comparison
First American Corporation generates 521% more annual revenue ($7.71B vs $1.24B). ACT leads profitability with a 54.5% profit margin vs 8.7%. ACT trades at a lower P/E of 9.2x. FAF earns a higher WallStSmart Score of 68/100 (B-).
ACT
Buy54
out of 100
Grade: C-
FAF
Strong Buy68
out of 100
Grade: B-
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 72.3%
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 70.4% YoY
16.2% revenue growth
Areas to Watch
1.7% revenue growth
Expensive relative to growth rate
Negative free cash flow — burning cash
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 54.5% and operating margin at 72.3%.
Bull Case : FAF
The strongest argument for FAF centers on P/E Ratio, Price/Book, EPS Growth. Revenue growth of 16.2% demonstrates continued momentum.
Bear Case : ACT
The primary concerns for ACT are Revenue Growth.
Bear Case : FAF
The primary concerns for FAF are PEG Ratio, Free Cash Flow.
Key Dynamics to Monitor
ACT profiles as a value stock while FAF is a growth play — different risk/reward profiles.
FAF carries more volatility with a beta of 1.26 — expect wider price swings.
FAF is growing revenue faster at 16.2% — sustainability is the question.
ACT generates stronger free cash flow (224M), providing more financial flexibility.
Bottom Line
FAF scores higher overall (68/100 vs 54/100) and 16.2% revenue growth. 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 →First American Corporation
FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA
First American Financial Corporation, provides financial services. The company is headquartered in Santa Ana, California.
Compare with Other INSURANCE - SPECIALTY Stocks
Want to dig deeper into these stocks?