Enact Holdings, Inc. (ACT) vs MGIC Investment Corporation (MTG)

Enact Holdings, Inc. and MGIC Investment Corporation are both Insurance Specialty companies. Enact Holdings, Inc. is the larger, with a market value of $6.5B against $5.9B — 1.1× the size. MGIC Investment Corporation trades at the lower P/E: 8.9× against 9.8×. Enact Holdings, Inc. grew revenue faster over the last twelve months: 2.49% against −1.88%. MGIC Investment Corporation has the higher net margin (59.2% vs 54.5%) and the higher return on invested capital (10.6% vs 9.51%). Both pay a dividend; Enact Holdings, Inc. yields more (5.12% vs 2.50%). Across the 23 metrics below, MGIC Investment Corporation leads on 17 and Enact Holdings, Inc. on 6.

Valuation

Metric ACT MTG Insurance Specialty median
P/E 9.85 8.92 9.15
P/S 5.23 5.01 1.84
P/B 1.21 1.20 1.16
Price to free cash flow 9.09 8.48 8.16
EV/EBITDA 7.51 6.95 7.51
EV/Sales 5.46 5.37 2.17
Earnings yield 10.16% 11.21% 10.79%
Free cash flow yield 11.00% 11.79% 11.79%

Profitability

Metric ACT MTG Insurance Specialty median
Gross margin 73.81% 77.48% 73.81%
Operating margin 73.11% 76.96% 17.70%
Net margin 54.51% 59.20% 13.80%
Free cash flow margin 57.50% 59.09% 34.47%
Return on equity 12.87% 13.92% 12.01%
Return on assets 9.95% 10.83% 4.12%
Return on invested capital 9.51% 10.56% 8.77%

Growth

Metric ACT MTG Insurance Specialty median
Revenue growth (TTM) 2.49% (1.88%) 7.53%
EPS growth (last fiscal year) 3.43% 8.65% —
Revenue growth, 5-year CAGR 2.24% 0.24% 2.24%
Net income growth, 5-year CAGR 12.73% 10.60% 0.00%

Health

Metric ACT MTG Insurance Specialty median
Debt to equity 0.14 0.13 0.15
Current ratio 0.76 0.64 0.53
Net debt to EBITDA 0.18 0.28 0.28

Dividend

Metric ACT MTG Insurance Specialty median
Dividend yield 5.12% 2.50% 2.60%
Payout ratio 0.14 0.15 0.21

Size

Metric ACT MTG Insurance Specialty median
Market cap 6.53b 5.89b 3.13b

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