MGIC Investment Corp (MTG)vsRoyal Bank of Canada (RY)
MTG
MGIC Investment Corp
$29.13
+0.52%
FINANCIAL SERVICES · Cap: $6.31B
RY
Royal Bank of Canada
$179.97
+2.71%
FINANCIAL SERVICES · Cap: $250.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 5126% more annual revenue ($63.42B vs $1.21B). MTG leads profitability with a 60.8% profit margin vs 33.1%. MTG appears more attractively valued with a PEG of 0.40. RY earns a higher WallStSmart Score of 68/100 (B-).
MTG
Buy65
out of 100
Grade: C+
RY
Strong Buy68
out of 100
Grade: B-
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 61 of every $100 in revenue as profit
Strong operational efficiency at 74.2%
Mega-cap, among the largest globally
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 46.2%
Generating 37.3B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
3.9% earnings growth
Weak financial health signals
Revenue declined 0.9%
Expensive relative to growth rate
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 60.8% and operating margin at 74.2%. 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 33.1% and operating margin at 46.2%.
Bear Case : MTG
The primary concerns for MTG are EPS Growth, Piotroski F-Score, Revenue Growth.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
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 7.5% — sustainability is the question.
RY generates stronger free cash flow (37.3B), providing more financial flexibility.
Bottom Line
RY scores higher overall (68/100 vs 65/100), backed by strong 33.1% 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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