Hamilton Lane vs Essent

This page compares HAMILTON LANE INC-CLASS A and Essent Group Ltd, offering a neutral overview of business models, financial performance, and market context for readers. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

HLNE

Metric

ESNT

$8.33B

Market Cap

$5.88B

9.11%

Potential Profit

8.66%

Buy

Analyst Rating

Buy

Investment Analysis

Hamilton Lane

HLNE

Pros

Hamilton Lane has achieved consistently robust net margins above 30%, reflecting strong profitability in alternative asset management.
The firm commands a nearly $9 billion market cap, underpinned by stable revenues and a diverse set of private market investment strategies.
Hamilton Lane maintains a solid balance sheet, as seen in a low debt-to-equity ratio and a current ratio above 4, indicating ample liquidity.

Considerations

Recent stock performance shows heightened volatility, with the share price trading well below its 52-week high, suggesting reduced investor appetite.
The dividend yield is modest at under 2%, which may limit appeal to income-focused investors compared to higher-yielding alternatives.
As a private markets specialist, Hamilton Lane is exposed to cyclical swings in private equity fundraising and secondary market liquidity.

Essent

ESNT

Pros

Essent Group’s core business—private mortgage insurance—benefits from high US housing demand and tight lending standards, supporting steady premium growth.
The company’s regulatory capital ratios remain comfortably above requirements, reflecting strong risk management and financial resilience.
Essent’s underwriting margins are supported by a disciplined approach to risk selection, as seen in consistently low claims ratios.

Considerations

Essent faces concentration risk, as its earnings are heavily dependent on the health of the US housing and mortgage markets.
Rising interest rates and potential macroeconomic downturns could negatively affect homebuyer affordability and mortgage origination volumes.
The mortgage insurance industry remains highly competitive, and Essent’s market share growth could be constrained by larger, established rivals.

About The Companies

Hamilton Lane (HLNE)

Hamilton Lane is a global investment firm that specialises in private markets. It acts as a gateway for institutional clients and private wealth investors, offering them access to asset classes that aren't typically available on public stock exchanges. These include private equity, private credit, real estate, and infrastructure. The company constructs investment solutions using a mix of strategies, such as investing directly in funds, co-investing alongside other managers, or acquiring secondary stakes. Hamilton Lane also provides a suite of related services, from advisory and data analytics to reporting and portfolio management. For investors, it represents a way to potentially gain exposure to the less-liquid but opportunity-rich world of private investments, although it's important to remember that all investments carry risk and returns are not guaranteed.

Essent (ESNT)

Essent Group Ltd. is a holding company, based in Bermuda, that plays a specialised role in the US housing finance system. Through its subsidiaries, it primarily offers private mortgage insurance (PMI) and reinsurance. This insurance protects mortgage lenders and investors from losses if a borrower defaults on their home loan, which is particularly relevant for mortgages with a lower down payment. Its main subsidiary, Essent Guaranty, Inc., is a key provider in the US market. The company also engages in reinsurance through Essent Reinsurance Ltd. and provides some contract underwriting services. For investors, Essent represents a focused play on the health of the US housing market and the ongoing need for credit risk management. The company's performance is often tied to employment trends, home price appreciation, and the overall volume of mortgage lending. As with any financial company, its value can rise as well as fall.

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6% Interest on Cash

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Comparison Snapshot

Investment Analysis

Hamilton Lane

Pros

Considerations

Essent

Pros

Considerations

About The Companies

Buy HLNE or ESNT in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

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Hamilton Lane vs MarketAxess

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Comparison Snapshot

About The Companies