Enact Holdings, Inc. (ACT) vs Assured Guaranty Ltd. (AGO)

Enact Holdings, Inc. and Assured Guaranty Ltd. are both Insurance Specialty companies. Enact Holdings, Inc. is the larger, with a market value of $6.6B against $3.2B — 2.1× the size. Assured Guaranty Ltd. trades at the lower P/E: 9.6× against 9.9×. Enact Holdings, Inc. grew revenue faster over the last twelve months: 2.45% against −10.6%. Enact Holdings, Inc. has the higher net margin (54.1% vs 37.3%) and the higher return on invested capital (9.88% vs 3.91%). Both pay a dividend; Assured Guaranty Ltd. yields more (2.06% vs 1.88%). Across the 21 metrics below, Enact Holdings, Inc. leads on 13 and Assured Guaranty Ltd. on 8.

Valuation

Metric ACT AGO Insurance Specialty median
P/E 9.91 9.57 9.49
P/S 5.23 3.38 1.69
P/B 1.26 0.57 1.23
Price to free cash flow 9.20 9.81 8.44
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 10.09% 10.45% 10.48%
Free cash flow yield 10.87% 10.19% 10.87%

Profitability

Metric ACT AGO Insurance Specialty median
Gross margin 0.00% 99.04% 56.22%
Operating margin 0.00% 46.38% 15.19%
Net margin 54.08% 37.34% 13.80%
Free cash flow margin 56.79% 34.47% 34.47%
Return on equity 12.91% 6.21% 12.01%
Return on assets 9.93% 2.84% 3.55%
Return on invested capital 9.88% 3.91% 9.88%

Growth

Metric ACT AGO Insurance Specialty median
Revenue growth (TTM) 2.45% (10.56%) 7.68%
EPS growth (last fiscal year) 3.43% 49.34% 8.65%
Revenue growth, 5-year CAGR 2.24% (0.09%) 2.24%
Net income growth, 5-year CAGR 12.73% 6.80% 0.00%

Health

Metric ACT AGO Insurance Specialty median
Debt to equity 0.14 0.31 0.16
Current ratio 0.82 0.42 0.52
Net debt to EBITDA 0.18 2.24 0.28

Dividend

Metric ACT AGO Insurance Specialty median
Dividend yield 1.88% 2.06% 2.06%
Payout ratio 0.19 0.20 0.19

Size

Metric ACT AGO Insurance Specialty median
Market cap 6.57b 3.16b 3.31b

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