First American Corporation (FAF)vsMGIC Investment Corp (MTG)
FAF
First American Corporation
$71.04
+1.75%
FINANCIAL SERVICES · Cap: $7.13B
MTG
MGIC Investment Corp
$26.75
+0.64%
FINANCIAL SERVICES · Cap: $5.62B
Smart Verdict
WallStSmart Research — data-driven comparison
First American Corporation generates 540% more annual revenue ($7.71B vs $1.20B). MTG leads profitability with a 59.6% profit margin vs 8.7%. MTG appears more attractively valued with a PEG of 0.40. FAF earns a higher WallStSmart Score of 68/100 (B-).
FAF
Strong Buy68
out of 100
Grade: B-
MTG
Buy65
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 70.4% YoY
16.2% revenue growth
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 60 of every $100 in revenue as profit
Strong operational efficiency at 72.6%
Areas to Watch
Distress zone — elevated risk
Expensive relative to growth rate
Negative free cash flow — burning cash
1.3% earnings growth
Weak financial health signals
Revenue declined 3.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : FAF
The strongest argument for FAF centers on P/E Ratio, Price/Book, EPS Growth. Revenue growth of 16.2% demonstrates continued momentum.
Bull Case : MTG
The strongest argument for MTG centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 59.6% and operating margin at 72.6%. PEG of 0.40 suggests the stock is reasonably priced for its growth.
Bear Case : FAF
The primary concerns for FAF are Altman Z-Score, PEG Ratio, Free Cash Flow.
Bear Case : MTG
The primary concerns for MTG are EPS Growth, Piotroski F-Score, Revenue Growth.
Key Dynamics to Monitor
FAF profiles as a growth stock while MTG is a declining play — different risk/reward profiles.
FAF carries more volatility with a beta of 1.30 — expect wider price swings.
FAF is growing revenue faster at 16.2% — sustainability is the question.
MTG generates stronger free cash flow (77M), providing more financial flexibility.
Bottom Line
FAF scores higher overall (68/100 vs 65/100) and 16.2% 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.
First American Corporation
FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA
First American Financial Corporation, provides financial services. The company is headquartered in Santa Ana, California.
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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