WallStSmart

Enact Holdings Inc (ACT)vsMGIC Investment Corp (MTG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Enact Holdings Inc generates 5% more annual revenue ($1.25B vs $1.20B). MTG leads profitability with a 59.2% profit margin vs 54.5%. MTG trades at a lower P/E of 9.6x. MTG earns a higher WallStSmart Score of 67/100 (B-).

ACT

Buy

56

out of 100

Grade: C

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

MTG

Strong Buy

67

out of 100

Grade: B-

Growth: 4.0Profit: 8.5Value: 8.3Quality: 7.3
Piotroski: 2/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACT5 strengths · Avg: 9.8/10
P/E RatioValuation
10.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Profit MarginProfitability
54.5%10/10

Keeps 55 of every $100 in revenue as profit

Operating MarginProfitability
73.3%10/10

Strong operational efficiency at 73.3%

Debt/EquityHealth
0.149/10

Conservative balance sheet, low leverage

MTG6 strengths · Avg: 9.8/10
PEG RatioValuation
0.4010/10

Growing faster than its price suggests

P/E RatioValuation
9.6x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Profit MarginProfitability
59.2%10/10

Keeps 59 of every $100 in revenue as profit

Operating MarginProfitability
80.8%10/10

Strong operational efficiency at 80.8%

Debt/EquityHealth
0.139/10

Conservative balance sheet, low leverage

Areas to Watch

ACT1 concerns · Avg: 4.0/10
Revenue GrowthGrowth
4.1%4/10

4.1% revenue growth

MTG2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Revenue GrowthGrowth
-2.9%2/10

Revenue declined 2.9%

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 73.3%.

Bull Case : MTG

The strongest argument for MTG centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 59.2% and operating margin at 80.8%. PEG of 0.40 suggests the stock is reasonably priced for its growth.

Bear Case : ACT

The primary concerns for ACT are Revenue Growth.

Bear Case : MTG

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

Key Dynamics to Monitor

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

MTG carries more volatility with a beta of 0.65 — expect wider price swings.

ACT is growing revenue faster at 4.1% — sustainability is the question.

MTG generates stronger free cash flow (184M), providing more financial flexibility.

Bottom Line

MTG scores higher overall (67/100 vs 56/100), backed by strong 59.2% 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 prominent player in the U.S. housing sector, specializing in private mortgage insurance and comprehensive risk management solutions that enhance the affordability and accessibility of homeownership. The company is characterized by a strong capital foundation and a commitment to innovation, driven by strategic collaborations that optimize lender operations and navigate complex market dynamics. With a focus on proactive risk management and sustainable housing practices, Enact is well-positioned to seize emerging growth opportunities within the evolving real estate landscape, highlighting its essential role in supporting the housing market.

Visit Website →

MGIC Investment Corp

FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA

MGIC Investment Corporation offers private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government-sponsored entities in the United States, Puerto Rico, and Guam. The company is headquartered in Milwaukee, Wisconsin.

Want to dig deeper into these stocks?