Essent Group Ltd. (ESNT) vs MGIC Investment Corporation (MTG)

Essent Group Ltd. and MGIC Investment Corporation are both Insurance Specialty companies. Essent Group Ltd. and MGIC Investment Corporation are of similar size ($5.9B and $5.8B). Essent Group Ltd. trades at the lower P/E: 8.8× against 8.9×. Essent Group Ltd. grew revenue faster over the last twelve months: 4.31% against −1.88%. MGIC Investment Corporation has the higher net margin (59.2% vs 51.5%) and the higher return on invested capital (10.6% vs 8.77%). Both pay a dividend; MGIC Investment Corporation yields more (2.50% vs 1.89%). Across the 23 metrics below, Essent Group Ltd. leads on 12 and MGIC Investment Corporation on 11.

Valuation

Metric ESNT MTG Insurance Specialty median
P/E 8.81 8.92 9.15
P/S 4.37 5.01 1.84
P/B 1.02 1.20 1.16
Price to free cash flow 7.00 8.48 8.16
EV/EBITDA 7.60 6.95 7.51
EV/Sales 5.01 5.37 2.17
Earnings yield 11.34% 11.21% 10.79%
Free cash flow yield 14.28% 11.79% 11.79%

Profitability

Metric ESNT MTG Insurance Specialty median
Gross margin 64.51% 77.48% 73.81%
Operating margin 64.51% 76.96% 17.70%
Net margin 51.45% 59.20% 13.80%
Free cash flow margin 62.43% 59.09% 34.47%
Return on equity 12.01% 13.92% 12.01%
Return on assets 9.19% 10.83% 4.12%
Return on invested capital 8.77% 10.56% 8.77%

Growth

Metric ESNT MTG Insurance Specialty median
Revenue growth (TTM) 4.31% (1.88%) 7.53%
EPS growth (last fiscal year) 0.73% 8.65% —
Revenue growth, 5-year CAGR 5.71% 0.24% 2.24%
Net income growth, 5-year CAGR 10.81% 10.60% 0.00%

Health

Metric ESNT MTG Insurance Specialty median
Debt to equity 0.09 0.13 0.15
Current ratio 0.31 0.64 0.53
Net debt to EBITDA 0.43 0.28 0.28

Dividend

Metric ESNT MTG Insurance Specialty median
Dividend yield 1.89% 2.50% 2.60%
Payout ratio 0.15 0.15 0.21

Size

Metric ESNT MTG Insurance Specialty median
Market cap 5.78b 5.89b 3.13b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack