Assured Guaranty Ltd. (AGO) vs MGIC Investment Corporation (MTG)

Assured Guaranty Ltd. and MGIC Investment Corporation are both Insurance Specialty companies. MGIC Investment Corporation is the larger, with a market value of $5.9B against $3.0B — 2.0× the size. MGIC Investment Corporation trades at the lower P/E: 8.9× against 9.3×. MGIC Investment Corporation grew revenue faster over the last twelve months: −1.88% against −10.6%. MGIC Investment Corporation has the higher net margin (59.2% vs 37.3%) and the higher return on invested capital (10.6% vs 3.91%). Both pay a dividend; MGIC Investment Corporation yields more (2.50% vs 1.36%). Across the 23 metrics below, MGIC Investment Corporation leads on 18 and Assured Guaranty Ltd. on 5.

Valuation

Metric AGO MTG Insurance Specialty median
P/E 9.27 8.92 9.15
P/S 3.27 5.01 1.84
P/B 0.55 1.20 1.16
Price to free cash flow 9.50 8.48 8.16
EV/EBITDA 10.26 6.95 7.51
EV/Sales 4.76 5.37 2.17
Earnings yield 10.79% 11.21% 10.79%
Free cash flow yield 10.52% 11.79% 11.79%

Profitability

Metric AGO MTG Insurance Specialty median
Gross margin 99.04% 77.48% 73.81%
Operating margin 46.38% 76.96% 17.70%
Net margin 37.34% 59.20% 13.80%
Free cash flow margin 34.47% 59.09% 34.47%
Return on equity 6.21% 13.92% 12.01%
Return on assets 2.84% 10.83% 4.12%
Return on invested capital 3.91% 10.56% 8.77%

Growth

Metric AGO MTG Insurance Specialty median
Revenue growth (TTM) (10.56%) (1.88%) 7.53%
EPS growth (last fiscal year) 49.34% 8.65% —
Revenue growth, 5-year CAGR (0.09%) 0.24% 2.24%
Net income growth, 5-year CAGR 6.80% 10.60% 0.00%

Health

Metric AGO MTG Insurance Specialty median
Debt to equity 0.31 0.13 0.15
Current ratio 0.42 0.64 0.53
Net debt to EBITDA 2.24 0.28 0.28

Dividend

Metric AGO MTG Insurance Specialty median
Dividend yield 1.36% 2.50% 2.60%
Payout ratio 0.21 0.15 0.21

Size

Metric AGO MTG Insurance Specialty median
Market cap 3.01b 5.89b 3.13b

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