WallStSmart

Enact Holdings Inc (ACT)vsMGIC Investment Corp (MTG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Enact Holdings Inc generates 3% more annual revenue ($1.24B vs $1.20B). MTG leads profitability with a 59.6% profit margin vs 54.5%. MTG trades at a lower P/E of 8.4x. MTG earns a higher WallStSmart Score of 65/100 (C+).

ACT

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 6.7Quality: 5.8
Piotroski: 3/9

MTG

Buy

65

out of 100

Grade: C+

Growth: 3.3Profit: 8.5Value: 8.3Quality: 4.8
Piotroski: 2/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACT5 strengths · Avg: 9.8/10
P/E RatioValuation
9.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Profit MarginProfitability
54.5%10/10

Keeps 55 of every $100 in revenue as profit

Operating MarginProfitability
72.3%10/10

Strong operational efficiency at 72.3%

Debt/EquityHealth
0.149/10

Conservative balance sheet, low leverage

MTG5 strengths · Avg: 10.0/10
PEG RatioValuation
0.4010/10

Growing faster than its price suggests

P/E RatioValuation
8.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
59.6%10/10

Keeps 60 of every $100 in revenue as profit

Operating MarginProfitability
72.6%10/10

Strong operational efficiency at 72.6%

Areas to Watch

ACT2 concerns · Avg: 3.5/10
Revenue GrowthGrowth
1.7%4/10

1.7% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

MTG3 concerns · Avg: 3.0/10
EPS GrowthGrowth
1.3%4/10

1.3% earnings growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Revenue GrowthGrowth
-3.0%2/10

Revenue declined 3.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : ACT

The strongest argument for ACT centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 54.5% and operating margin at 72.3%.

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 : ACT

The primary concerns for ACT are Revenue Growth, Piotroski F-Score.

Bear Case : MTG

The primary concerns for MTG are EPS Growth, Piotroski F-Score, Revenue Growth.

Key Dynamics to Monitor

ACT profiles as a value stock while MTG is a declining play — different risk/reward profiles.

MTG carries more volatility with a beta of 0.70 — expect wider price swings.

ACT is growing revenue faster at 1.7% — sustainability is the question.

ACT generates stronger free cash flow (224M), providing more financial flexibility.

Bottom Line

MTG scores higher overall (65/100 vs 54/100), backed by strong 59.6% margins. Both earn "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 premier provider of private mortgage insurance and risk management solutions, focusing on the U.S. housing sector. The company plays a critical role in facilitating homeownership and promoting sustainable housing initiatives, utilizing its strong capital position and strategic alliances to navigate market complexities. With a commitment to innovation and technological advancement, Enact is well-equipped to adapt to industry dynamics, positioning itself to seize growth opportunities while enhancing lender capabilities and effectively managing risk exposure.

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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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