WallStSmart

Essent Group Ltd (ESNT)vsFirst American Corporation (FAF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

First American Corporation generates 503% more annual revenue ($7.98B vs $1.32B). ESNT leads profitability with a 51.4% profit margin vs 9.3%. ESNT appears more attractively valued with a PEG of 0.84. ESNT earns a higher WallStSmart Score of 73/100 (B).

ESNT

Strong Buy

73

out of 100

Grade: B

Growth: 6.0Profit: 8.0Value: 7.7Quality: 6.5
Piotroski: 2/9Altman Z: 4.50

FAF

Strong Buy

70

out of 100

Grade: B

Growth: 6.7Profit: 6.5Value: 5.7Quality: 7.3
Piotroski: 5/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ESNT6 strengths · Avg: 10.0/10
P/E RatioValuation
9.6x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
51.4%10/10

Keeps 51 of every $100 in revenue as profit

Operating MarginProfitability
65.7%10/10

Strong operational efficiency at 65.7%

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.5010/10

Safe zone — low bankruptcy risk

FAF4 strengths · Avg: 9.5/10
P/E RatioValuation
10.1x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
50.4%10/10

Earnings expanding 50.4% YoY

Revenue GrowthGrowth
15.0%8/10

15.0% revenue growth

Areas to Watch

ESNT1 concerns · Avg: 3.0/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

FAF1 concerns · Avg: 2.0/10
PEG RatioValuation
2.982/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : ESNT

The strongest argument for ESNT centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 51.4% and operating margin at 65.7%. Revenue growth of 13.6% demonstrates continued momentum.

Bull Case : FAF

The strongest argument for FAF centers on P/E Ratio, Price/Book, EPS Growth. Revenue growth of 15.0% 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.

Key Dynamics to Monitor

ESNT profiles as a mature stock while FAF is a value play — different risk/reward profiles.

FAF carries more volatility with a beta of 1.23 — expect wider price swings.

FAF is growing revenue faster at 15.0% — sustainability is the question.

FAF generates stronger free cash flow (317M), providing more financial flexibility.

Bottom Line

ESNT scores higher overall (73/100 vs 70/100), backed by strong 51.4% margins and 13.6% revenue growth. 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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