Enact Holdings, Inc. (ACT) vs Radian Group Inc. (RDN)

Enact Holdings, Inc. and Radian Group Inc. are both Insurance Specialty companies. Enact Holdings, Inc. is the larger, with a market value of $6.6B against $4.9B — 1.3× the size. Radian Group Inc. trades at the lower P/E: 9.5× against 9.9×. Radian Group Inc. grew revenue faster over the last twelve months: 41.9% against 2.45%. Enact Holdings, Inc. has the higher net margin (54.1% vs 32.6%) and the higher return on invested capital (9.88% vs 7.69%). Both pay a dividend; Radian Group Inc. yields more (2.75% vs 1.88%). Across the 21 metrics below, Radian Group Inc. leads on 12 and Enact Holdings, Inc. on 9.

Valuation

Metric ACT RDN Insurance Specialty median
P/E 9.91 9.47 9.49
P/S 5.23 3.06 1.69
P/B 1.26 1.05 1.23
Price to free cash flow 9.20 3.61 8.44
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 10.09% 10.56% 10.48%
Free cash flow yield 10.87% 27.67% 10.87%

Profitability

Metric ACT RDN Insurance Specialty median
Gross margin 0.00% 69.22% 56.22%
Operating margin 0.00% 48.72% 15.19%
Net margin 54.08% 32.60% 13.80%
Free cash flow margin 56.79% 84.53% 34.47%
Return on equity 12.91% 11.53% 12.01%
Return on assets 9.93% 5.30% 3.55%
Return on invested capital 9.88% 7.69% 9.88%

Growth

Metric ACT RDN Insurance Specialty median
Revenue growth (TTM) 2.45% 41.92% 7.68%
EPS growth (last fiscal year) 3.43% 5.61% 8.65%
Revenue growth, 5-year CAGR 2.24% (3.61%) 2.24%
Net income growth, 5-year CAGR 12.73% 8.16% 0.00%

Health

Metric ACT RDN Insurance Specialty median
Debt to equity 0.14 0.26 0.16
Current ratio 0.82 0.39 0.52
Net debt to EBITDA 0.18 1.20 0.28

Dividend

Metric ACT RDN Insurance Specialty median
Dividend yield 1.88% 2.75% 2.06%
Payout ratio 0.19 0.26 0.19

Size

Metric ACT RDN Insurance Specialty median
Market cap 6.57b 4.93b 3.31b

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