First American Corporation (FAF)vsMGIC Investment Corp (MTG)
FAF
First American Corporation
$58.36
+0.43%
FINANCIAL SERVICES · Cap: $5.92B
MTG
MGIC Investment Corp
$26.01
+0.50%
FINANCIAL SERVICES · Cap: $5.61B
Smart Verdict
WallStSmart Research — data-driven comparison
First American Corporation generates 514% more annual revenue ($7.45B vs $1.21B). MTG leads profitability with a 60.8% profit margin vs 8.3%. MTG appears more attractively valued with a PEG of 0.40. FAF earns a higher WallStSmart Score of 72/100 (B).
FAF
Strong Buy72
out of 100
Grade: B
MTG
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+77.1%
Fair Value
$280.80
Current Price
$58.36
$222.44 discount
Margin of Safety
+33.2%
Fair Value
$40.95
Current Price
$26.01
$14.94 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Revenue surging 21.6% year-over-year
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 61 of every $100 in revenue as profit
Strong operational efficiency at 74.2%
Areas to Watch
Expensive relative to growth rate
1.9% earnings growth
Distress zone — elevated risk
3.9% earnings growth
Weak financial health signals
Revenue declined 0.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : FAF
The strongest argument for FAF centers on P/E Ratio, Price/Book, Revenue Growth. Revenue growth of 21.6% demonstrates continued momentum.
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 : FAF
The primary concerns for FAF are PEG Ratio, EPS Growth, Altman Z-Score.
Bear Case : MTG
The primary concerns for MTG are EPS Growth, Piotroski F-Score, Revenue Growth.
Key Dynamics to Monitor
FAF profiles as a growth stock while MTG is a declining 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 21.6% — sustainability is the question.
FAF generates stronger free cash flow (325M), providing more financial flexibility.
Bottom Line
FAF scores higher overall (72/100 vs 65/100) and 21.6% revenue growth. MTG offers better value entry with a 33.2% margin of safety. 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.
First American Corporation
FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA
First American Financial Corporation, provides financial services. The company is headquartered in Santa Ana, California.
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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