MGIC Investment Corp (MTG)vsRoyal Bank of Canada (RY)
MTG
MGIC Investment Corp
$30.74
-0.32%
FINANCIAL SERVICES · Cap: $6.29B
RY
Royal Bank of Canada
$205.90
-0.04%
FINANCIAL SERVICES · Cap: $291.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 5516% more annual revenue ($67.15B vs $1.20B). MTG leads profitability with a 59.2% profit margin vs 33.9%. MTG appears more attractively valued with a PEG of 0.40. MTG earns a higher WallStSmart Score of 67/100 (B-).
MTG
Strong Buy67
out of 100
Grade: B-
RY
Buy63
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 59 of every $100 in revenue as profit
Strong operational efficiency at 80.8%
Conservative balance sheet, low leverage
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 46.4%
Reasonable price relative to book value
Areas to Watch
Weak financial health signals
Revenue declined 2.9%
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : MTG
The strongest argument for MTG centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 59.2% and operating margin at 80.8%. PEG of 0.40 suggests the stock is reasonably priced for its growth.
Bull Case : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.9% and operating margin at 46.4%.
Bear Case : MTG
The primary concerns for MTG are Piotroski F-Score, Revenue Growth.
Bear Case : RY
The primary concerns for RY are PEG Ratio, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.88 is elevated, increasing financial risk.
Key Dynamics to Monitor
MTG profiles as a declining stock while RY is a mature play — different risk/reward profiles.
RY carries more volatility with a beta of 0.92 — expect wider price swings.
RY is growing revenue faster at 8.9% — sustainability is the question.
MTG generates stronger free cash flow (184M), providing more financial flexibility.
Bottom Line
MTG scores higher overall (67/100 vs 63/100), backed by strong 59.2% margins. 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.
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.
Royal Bank of Canada
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.
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