Enact Holdings Inc (ACT)vsFirst American Corporation (FAF)
ACT
Enact Holdings Inc
$44.04
+1.90%
FINANCIAL SERVICES · Cap: $6.03B
FAF
First American Corporation
$71.04
+1.75%
FINANCIAL SERVICES · Cap: $7.13B
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 9.4x. 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
Weak financial health signals
Distress zone — elevated risk
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, Piotroski F-Score.
Bear Case : FAF
The primary concerns for FAF are Altman Z-Score, 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 1.30 — 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 premier provider of private mortgage insurance and risk management solutions, focusing on the U.S. housing sector. The company plays a critical role in facilitating homeownership and promoting sustainable housing initiatives, utilizing its strong capital position and strategic alliances to navigate market complexities. With a commitment to innovation and technological advancement, Enact is well-equipped to adapt to industry dynamics, positioning itself to seize growth opportunities while enhancing lender capabilities and effectively managing risk exposure.
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.
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