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 8.1x. RDN earns a higher WallStSmart Score of 78/100 (B+).

ACT

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 6.7Quality: 6.5
Piotroski: 4/9

RDN

Strong Buy

78

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
9.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

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
8.1x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

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 0.74 — 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 (78/100 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 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.

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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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