Enact Holdings Inc (ACT)vsFirst American Corporation (FAF)
ACT
Enact Holdings Inc
$40.30
-0.15%
FINANCIAL SERVICES · Cap: $5.83B
FAF
First American Corporation
$58.36
+0.43%
FINANCIAL SERVICES · Cap: $5.92B
Smart Verdict
WallStSmart Research — data-driven comparison
First American Corporation generates 503% more annual revenue ($7.45B vs $1.24B). ACT leads profitability with a 54.6% profit margin vs 8.3%. ACT trades at a lower P/E of 8.9x. FAF earns a higher WallStSmart Score of 72/100 (B).
ACT
Buy56
out of 100
Grade: C
FAF
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+69.5%
Fair Value
$142.83
Current Price
$40.30
$102.53 discount
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 75.3%
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Reasonable price relative to book value
Revenue surging 21.6% year-over-year
Areas to Watch
3.6% revenue growth
Weak financial health signals
Expensive relative to growth rate
1.9% earnings growth
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ACT
The strongest argument for ACT centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 54.6% and operating margin at 75.3%.
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 : ACT
The primary concerns for ACT are Revenue Growth, Piotroski F-Score.
Bear Case : FAF
The primary concerns for FAF are PEG Ratio, EPS Growth, Altman Z-Score.
Key Dynamics to Monitor
ACT profiles as a value 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 56/100) and 21.6% revenue growth. ACT offers better value entry with a 69.5% 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.
Enact Holdings Inc
FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA
Enact Holdings Inc (ACT) is a leading provider of private mortgage insurance and risk management solutions, primarily for the U.S. housing sector. The company is dedicated to facilitating homeownership and promoting sustainable housing practices, leveraging its robust capital resources and strategic partnerships to address market challenges. Enact’s commitment to innovation and technology enables it to adapt swiftly to industry changes, positioning the company to capitalize on growth opportunities while enhancing the capabilities of lenders and effectively managing risk.
Visit Website →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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