MGIC Investment vs Essent

This page compares MGIC Investment and Essent, examining their business models, financial performance, and market context. It presents neutral explanations of how each company operates, the markets they serve, and the factors shaping their position now and into the near term. Educational content, not financial advice.

This page compares MGIC Investment and Essent, examining their business models, financial performance, and market context. It presents neutral explanations of how each company operates, the markets th...

Comparison Snapshot

Key Financial Metrics

MTG

Metric

ESNT

$5.89B

Market Cap

$5.88B

2.27%

Potential Profit

8.66%

Hold

Analyst Rating

Buy

Investment Analysis

MGIC Investment

MTG

Pros

MGIC Investment reported strong profitability with a net profit margin of nearly 62% and a gross margin above 83%.
The company has demonstrated consistent earnings growth, with a five-year EPS compound annual growth rate of 17.9%.
MGIC Investment maintains a low debt-to-equity ratio of around 12.5%, indicating a conservative balance sheet.

Considerations

Revenue growth has been flat or modest, with Q3 2025 revenues missing analyst expectations despite earnings beating estimates.
The forward price-to-earnings (PE) ratio near 9.3x suggests limited upside based on current valuation compared to potential downside risks.
MGIC’s earnings per share growth has slowed in the near term from its five-year trend, with an expected slight EPS decline in the next 12 months.

Essent

ESNT

Pros

Essent Group benefits from its strong position in the private mortgage insurance sector with diversified risk management solutions.
The company shows robust revenue growth driven by demand in home mortgage insurance markets underpinned by stable housing market trends.
Essent has a well-capitalized balance sheet that supports underwriting growth and absorbes credit losses sustainably.

Considerations

Essent’s financial performance remains sensitive to fluctuations in the housing market and mortgage default rates, exposing it to cyclical risks.
Regulatory changes impacting mortgage insurance standards or capital requirements could increase operating costs or constrain growth.
Competitive pressures from other private mortgage insurers and alternative credit risk solutions may limit pricing power and market share expansion.

About The Companies

MGIC Investment (MTG)

MGIC Investment Corp. (MTG) is a leading US private mortgage insurer that helps lenders manage credit risk on mortgage loans. The company earns premiums from mortgage insurance policies and invests premium proceeds, while paying claims when insured borrowers default. Its financial performance is tied closely to the US housing market, borrower credit profiles, unemployment and interest-rate trends. MGIC’s capital levels, underwriting standards and loss reserves are key indicators investors watch, as are regulatory developments affecting mortgage lending. The business can be cyclical: stronger home prices and employment generally reduce claims, while downturns can increase losses. This summary is for general educational purposes only and is not personal financial advice. Mortgage-insurance stocks can be volatile and suitability depends on an investor’s objectives, time horizon and risk tolerance; consult a qualified adviser before making investment decisions.

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.

Which Baskets Do They Appear In?

The Great Mortgage Privatization

The planned IPOs for mortgage giants Fannie Mae and Freddie Mac signal a historic shift toward privatization in the U.S. housing market. This move stands to benefit not only the investment banks managing the deal but also a wider ecosystem of mortgage lenders and insurers.

Published: August 11, 2025

Explore Basket

Which Baskets Do They Appear In?

The Great Mortgage Privatization

The planned IPOs for mortgage giants Fannie Mae and Freddie Mac signal a historic shift toward privatization in the U.S. housing market. This move stands to benefit not only the investment banks managing the deal but also a wider ecosystem of mortgage lenders and insurers.

Published: August 11, 2025

Explore Basket

Discover More Comparisons

MGIC Investment vs Blackstone Secured Lending

MGIC Investment vs Hanover Insurance

MGIC Investment vs MarketAxess

MGIC Investment vs Essent

Comparison Snapshot