WallStSmart

Enact Holdings Inc (ACT)vsRadian Group Inc (RDN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Radian Group Inc generates 10% more annual revenue ($1.37B vs $1.24B). ACT leads profitability with a 54.5% profit margin vs 41.0%. RDN trades at a lower P/E of 9.2x. RDN earns a higher WallStSmart Score of 75/100 (B+).

ACT

Buy

54

out of 100

Grade: C-

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

RDN

Strong Buy

75

out of 100

Grade: B+

Growth: 5.3Profit: 8.0Value: 7.7Quality: 7.0
Piotroski: 5/9Altman Z: 3.07

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACT5 strengths · Avg: 9.8/10
P/E RatioValuation
10.1x10/10

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
72.3%10/10

Strong operational efficiency at 72.3%

Debt/EquityHealth
0.149/10

Conservative balance sheet, low leverage

RDN6 strengths · Avg: 10.0/10
P/E RatioValuation
9.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
41.0%10/10

Keeps 41 of every $100 in revenue as profit

Operating MarginProfitability
46.6%10/10

Strong operational efficiency at 46.6%

Revenue GrowthGrowth
58.8%10/10

Revenue surging 58.8% year-over-year

Altman Z-ScoreHealth
3.0710/10

Safe zone — low bankruptcy risk

Areas to Watch

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

1.7% revenue growth

RDN1 concerns · Avg: 2.0/10
EPS GrowthGrowth
-9.0%2/10

Earnings declined 9.0%

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 : RDN

The strongest argument for RDN centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 41.0% and operating margin at 46.6%. Revenue growth of 58.8% demonstrates continued momentum.

Bear Case : ACT

The primary concerns for ACT are Revenue Growth.

Bear Case : RDN

The primary concerns for RDN are EPS Growth.

Key Dynamics to Monitor

ACT profiles as a value stock while RDN is a growth play — different risk/reward profiles.

RDN carries more volatility with a beta of 0.72 — expect wider price swings.

RDN is growing revenue faster at 58.8% — sustainability is the question.

RDN generates stronger free cash flow (284M), providing more financial flexibility.

Bottom Line

RDN scores higher overall (75/100 vs 54/100), backed by strong 41.0% margins and 58.8% 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 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.

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Radian Group Inc

FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA

Radian Group Inc. is engaged in the mortgage and real estate services business in the United States. The company is headquartered in Philadelphia, Pennsylvania.

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