WallStSmart

Employers Holdings Inc (EIG)vsMGIC Investment Corp (MTG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

MGIC Investment Corp generates 41% more annual revenue ($1.21B vs $858.70M). MTG leads profitability with a 60.8% profit margin vs 1.3%. MTG appears more attractively valued with a PEG of 0.40. MTG earns a higher WallStSmart Score of 65/100 (C+).

EIG

Hold

47

out of 100

Grade: D+

Growth: 3.3Profit: 3.5Value: 4.7Quality: 7.8
Piotroski: 4/9

MTG

Buy

65

out of 100

Grade: C+

Growth: 5.3Profit: 8.5Value: 10.0Quality: 4.8
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EIGSignificantly Overvalued (-1274.1%)

Margin of Safety

-1274.1%

Fair Value

$3.13

Current Price

$40.06

$36.93 premium

UndervaluedFair: $3.13Overvalued
MTGUndervalued (+33.2%)

Margin of Safety

+33.2%

Fair Value

$40.95

Current Price

$26.01

$14.94 discount

UndervaluedFair: $40.95Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EIG2 strengths · Avg: 10.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0410/10

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
8.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
60.8%10/10

Keeps 61 of every $100 in revenue as profit

Operating MarginProfitability
74.2%10/10

Strong operational efficiency at 74.2%

Areas to Watch

EIG4 concerns · Avg: 2.8/10
Market CapQuality
$761.55M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
1.1%3/10

ROE of 1.1% — below average capital efficiency

Profit MarginProfitability
1.3%3/10

1.3% margin — thin

P/E RatioValuation
85.0x2/10

Premium valuation, high expectations priced in

MTG3 concerns · Avg: 3.0/10
EPS GrowthGrowth
3.9%4/10

3.9% earnings growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Revenue GrowthGrowth
-0.9%2/10

Revenue declined 0.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : EIG

The strongest argument for EIG centers on Price/Book, Debt/Equity. PEG of 1.32 suggests the stock is reasonably priced for its growth.

Bull 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.

Bear Case : EIG

The primary concerns for EIG are Market Cap, Return on Equity, Profit Margin. A P/E of 85.0x leaves little room for execution misses. Thin 1.3% margins leave little buffer for downturns.

Bear Case : MTG

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

Key Dynamics to Monitor

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

MTG carries more volatility with a beta of 0.80 — expect wider price swings.

MTG is growing revenue faster at -0.9% — sustainability is the question.

MTG generates stronger free cash flow (230M), providing more financial flexibility.

Bottom Line

MTG scores higher overall (65/100 vs 47/100), backed by strong 60.8% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Employers Holdings Inc

FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA

Employers Holdings, Inc. operates in the commercial property and casualty insurance industry primarily in the United States. The company is headquartered in Reno, Nevada.

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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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