Essent Group Ltd (ESNT)vsMGIC Investment Corp (MTG)
ESNT
Essent Group Ltd
$57.95
+0.94%
FINANCIAL SERVICES · Cap: $5.55B
MTG
MGIC Investment Corp
$26.01
+0.50%
FINANCIAL SERVICES · Cap: $5.61B
Smart Verdict
WallStSmart Research — data-driven comparison
Essent Group Ltd generates 4% more annual revenue ($1.26B vs $1.21B). MTG leads profitability with a 60.8% profit margin vs 54.7%. MTG appears more attractively valued with a PEG of 0.40. ESNT earns a higher WallStSmart Score of 67/100 (B-).
ESNT
Strong Buy67
out of 100
Grade: B-
MTG
Buy65
out of 100
Grade: C+
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
+33.2%
Fair Value
$40.95
Current Price
$26.01
$14.94 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
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 61 of every $100 in revenue as profit
Strong operational efficiency at 74.2%
Areas to Watch
0.9% earnings growth
Weak financial health signals
Revenue declined 0.8%
3.9% earnings growth
Weak financial health signals
Revenue declined 0.9%
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 : MTG
The strongest argument for MTG centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 60.8% and operating margin at 74.2%. PEG of 0.40 suggests the stock is reasonably priced for its growth.
Bear Case : ESNT
The primary concerns for ESNT are EPS Growth, Piotroski F-Score, Revenue Growth.
Bear Case : MTG
The primary concerns for MTG are EPS Growth, Piotroski F-Score, Revenue Growth.
Key Dynamics to Monitor
ESNT carries more volatility with a beta of 0.87 — expect wider price swings.
ESNT is growing revenue faster at -0.8% — sustainability is the question.
MTG generates stronger free cash flow (230M), providing more financial flexibility.
Monitor INSURANCE - SPECIALTY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ESNT scores higher overall (67/100 vs 65/100), backed by strong 54.7% margins. MTG offers better value entry with a 33.2% margin of safety. 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.
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.
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.
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