Essent Group Ltd (ESNT)vsFirst American Corporation (FAF)
ESNT
Essent Group Ltd
$57.44
+0.47%
FINANCIAL SERVICES · Cap: $5.38B
FAF
First American Corporation
$67.02
+1.70%
FINANCIAL SERVICES · Cap: $6.70B
Smart Verdict
WallStSmart Research — data-driven comparison
First American Corporation generates 502% more annual revenue ($7.71B vs $1.28B). ESNT leads profitability with a 53.6% profit margin vs 8.7%. ESNT appears more attractively valued with a PEG of 0.84. ESNT earns a higher WallStSmart Score of 73/100 (B).
ESNT
Strong Buy73
out of 100
Grade: B
FAF
Strong Buy68
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 54 of every $100 in revenue as profit
Strong operational efficiency at 63.7%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 70.4% YoY
16.2% revenue growth
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : ESNT
The strongest argument for ESNT centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 53.6% and operating margin at 63.7%. PEG of 0.84 suggests the stock is reasonably priced for its growth.
Bull Case : FAF
The strongest argument for FAF centers on P/E Ratio, Price/Book, EPS Growth. Revenue growth of 16.2% demonstrates continued momentum.
Bear Case : ESNT
The primary concerns for ESNT are Piotroski F-Score.
Bear Case : FAF
The primary concerns for FAF are PEG Ratio, Free Cash Flow.
Key Dynamics to Monitor
ESNT profiles as a mature 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 16.2% — sustainability is the question.
ESNT generates stronger free cash flow (191M), providing more financial flexibility.
Bottom Line
ESNT scores higher overall (73/100 vs 68/100), backed by strong 53.6% margins. Both earn "Strong Buy" and "Strong 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.
Essent Group Ltd
FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA
Essent Group Ltd., provides private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. The company is headquartered in Hamilton, Bermuda.
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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