WallStSmart

Essent Group Ltd (ESNT)vsRyan Specialty Group Holdings Inc (RYAN)

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Smart Verdict

WallStSmart Research — data-driven comparison

Ryan Specialty Group Holdings Inc generates 137% more annual revenue ($2.99B vs $1.26B). ESNT leads profitability with a 54.7% profit margin vs 2.1%. ESNT trades at a lower P/E of 8.3x. ESNT earns a higher WallStSmart Score of 67/100 (B-).

ESNT

Strong Buy

67

out of 100

Grade: B-

Growth: 4.0Profit: 8.0Value: 7.3Quality: 5.3
Piotroski: 2/9Altman Z: 3.68

RYAN

Buy

54

out of 100

Grade: C-

Growth: 8.7Profit: 6.5Value: 3.0Quality: 4.5
Piotroski: 3/9Altman Z: 0.61
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ESNTSignificantly Overvalued (-15.2%)

Margin of Safety

-15.2%

Fair Value

$56.86

Current Price

$57.95

$1.09 premium

UndervaluedFair: $56.86Overvalued
RYANSignificantly Overvalued (-95.7%)

Margin of Safety

-95.7%

Fair Value

$22.00

Current Price

$33.50

$11.50 premium

UndervaluedFair: $22.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ESNT6 strengths · Avg: 9.7/10
P/E RatioValuation
8.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Profit MarginProfitability
54.7%10/10

Keeps 55 of every $100 in revenue as profit

Operating MarginProfitability
61.7%10/10

Strong operational efficiency at 61.7%

Altman Z-ScoreHealth
3.6810/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.848/10

Growing faster than its price suggests

RYAN1 strengths · Avg: 10.0/10
EPS GrowthGrowth
110.1%10/10

Earnings expanding 110.1% YoY

Areas to Watch

ESNT3 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.9%4/10

0.9% earnings growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Revenue GrowthGrowth
-0.8%2/10

Revenue declined 0.8%

RYAN4 concerns · Avg: 2.5/10
Profit MarginProfitability
2.1%3/10

2.1% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
71.3x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
0.612/10

Distress zone — elevated risk

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 54.7% and operating margin at 61.7%. PEG of 0.84 suggests the stock is reasonably priced for its growth.

Bull Case : RYAN

The strongest argument for RYAN centers on EPS Growth. Revenue growth of 13.6% demonstrates continued momentum.

Bear Case : ESNT

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

Bear Case : RYAN

The primary concerns for RYAN are Profit Margin, Piotroski F-Score, P/E Ratio. A P/E of 71.3x leaves little room for execution misses. Debt-to-equity of 5.68 is elevated, increasing financial risk.

Key Dynamics to Monitor

ESNT profiles as a declining stock while RYAN is a value play — different risk/reward profiles.

ESNT carries more volatility with a beta of 0.87 — expect wider price swings.

RYAN is growing revenue faster at 13.6% — sustainability is the question.

RYAN generates stronger free cash flow (246M), providing more financial flexibility.

Bottom Line

ESNT scores higher overall (67/100 vs 54/100), backed by strong 54.7% margins. 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.

Ryan Specialty Group Holdings Inc

FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA

Ryan Specialty Group Holdings Inc is a leading provider of specialty insurance solutions, focused on delivering innovative risk management services across diverse sectors. The company leverages a vast network of insurance wholesale operations and underwriting expertise to meet the complex needs of its clients, backed by strong relationships with insurers and distribution channels. By integrating advanced technology and analytics, Ryan Specialty enhances underwriting efficiencies and client results, positioning itself as a key player in the evolving insurance landscape. With a commitment to strategic growth initiatives, the company is poised to create sustainable shareholder value in a dynamic market.

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