Essent Group Ltd (ESNT)vsFirst American Corporation (FAF)
ESNT
Essent Group Ltd
$57.95
+0.94%
FINANCIAL SERVICES · Cap: $5.55B
FAF
First American Corporation
$58.36
+0.43%
FINANCIAL SERVICES · Cap: $5.92B
Smart Verdict
WallStSmart Research — data-driven comparison
First American Corporation generates 491% more annual revenue ($7.45B vs $1.26B). ESNT leads profitability with a 54.7% profit margin vs 8.3%. ESNT appears more attractively valued with a PEG of 0.84. FAF earns a higher WallStSmart Score of 72/100 (B).
ESNT
Strong Buy67
out of 100
Grade: B-
FAF
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-15.2%
Fair Value
$56.86
Current Price
$57.95
$1.09 premium
Margin of Safety
+77.1%
Fair Value
$280.80
Current Price
$58.36
$222.44 discount
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 61.7%
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Revenue surging 21.6% year-over-year
Areas to Watch
0.9% earnings growth
Weak financial health signals
Revenue declined 0.8%
Expensive relative to growth rate
1.9% earnings growth
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ESNT
The strongest argument for ESNT centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 54.7% and operating margin at 61.7%. PEG of 0.84 suggests the stock is reasonably priced for its growth.
Bull Case : FAF
The strongest argument for FAF centers on P/E Ratio, Price/Book, Revenue Growth. Revenue growth of 21.6% demonstrates continued momentum.
Bear Case : ESNT
The primary concerns for ESNT are EPS Growth, Piotroski F-Score, Revenue Growth.
Bear Case : FAF
The primary concerns for FAF are PEG Ratio, EPS Growth, Altman Z-Score.
Key Dynamics to Monitor
ESNT profiles as a declining 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 21.6% — sustainability is the question.
FAF generates stronger free cash flow (325M), providing more financial flexibility.
Bottom Line
FAF scores higher overall (72/100 vs 67/100) and 21.6% revenue growth. Both earn "Strong Buy" and "Strong 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.
Essent Group Ltd
FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA
Essent Group Ltd., provides private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. The company is headquartered in Hamilton, Bermuda.
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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