Essent Group Ltd (ESNT)vsRoyal Bank of Canada (RY)
ESNT
Essent Group Ltd
$68.18
-0.23%
FINANCIAL SERVICES · Cap: $6.15B
RY
Royal Bank of Canada
$205.90
-0.04%
FINANCIAL SERVICES · Cap: $291.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 4976% more annual revenue ($67.15B vs $1.32B). ESNT leads profitability with a 51.4% profit margin vs 33.9%. 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
RY
Buy63
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 51 of every $100 in revenue as profit
Strong operational efficiency at 65.7%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 46.4%
Reasonable price relative to book value
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
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 51.4% and operating margin at 65.7%. Revenue growth of 13.6% demonstrates continued momentum.
Bull Case : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.9% and operating margin at 46.4%.
Bear Case : ESNT
The primary concerns for ESNT are Piotroski F-Score.
Bear Case : RY
The primary concerns for RY are PEG Ratio, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.88 is elevated, increasing financial risk.
Key Dynamics to Monitor
RY carries more volatility with a beta of 0.92 — expect wider price swings.
ESNT is growing revenue faster at 13.6% — sustainability is the question.
ESNT generates stronger free cash flow (196M), providing more financial flexibility.
Monitor INSURANCE - SPECIALTY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ESNT scores higher overall (73/100 vs 63/100), backed by strong 51.4% margins and 13.6% revenue growth. 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.
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.
Royal Bank of Canada
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.
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