Valley vs Essent

This page compares Valley National Bancorp and Essent Group Ltd, outlining their business models, financial performance, and market context in clear, neutral terms. It highlights how each company serves customers, manages risk, and pursues growth within the sector, without implying outcomes or providing advice. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

VLY

Metric

ESNT

$6.57B

Market Cap

$5.88B

8.60%

Potential Profit

8.66%

Buy

Analyst Rating

Buy

Investment Analysis

Valley

VLY

Pros

Valley National Bancorp is viewed positively by analysts with a consensus 'Buy' rating and a 12-month price target implying around 5-19% upside from current levels.
The stock trades below tangible book value and offers a relatively attractive dividend yield of about 4.2%, supporting total return potential near 14%.
The bank offers diversified financial services including commercial, private, retail banking, insurance, and wealth management, providing multiple revenue streams.

Considerations

Revenue and net income declined significantly in 2024, with revenue down 16.7% and net income down 25.6%, indicating recent operational challenges.
The bank's beta of 1.11 suggests it carries moderate market risk and could be sensitive to broader market volatility.
Despite analyst optimism, the stock is in a sector with heightened regulatory scrutiny and economic sensitivity, which could hamper near-term growth.

Essent

ESNT

Pros

Essent Group Ltd benefits from specialization in mortgage insurance, a niche with steady demand driven by the housing market.
The company has strong underwriting discipline contributing to consistent profitability and risk management.
Essent has demonstrated expansion in its product offerings and geographic reach, offering potential growth drivers.

Considerations

Essent's financial performance is closely tied to the cyclical housing market and changes in mortgage origination volumes, exposing it to economic downturns.
The company faces regulatory and legal risks inherent in the insurance and mortgage sectors, which could result in costs or operational restrictions.
Valuation may be pressured by rising interest rates, which can reduce mortgage refinancing activity, impacting Essent's core business.

About The Companies

Valley (VLY)

Valley National Bancorp (VLY) is a US regional bank headquartered in New Jersey that provides commercial and retail banking, mortgage lending, wealth management and specialised finance services. With a market capitalisation around $5.7 billion, it sits among mid‑sized regional lenders whose earnings are shaped by net interest margin, loan growth and fee income. Investors should note the bank's exposure to local economic cycles, commercial real‑estate and consumer credit trends, and the competitive deposit landscape that can pressure funding costs. Regulatory oversight, capital adequacy and provisioning for loan losses are important monitoring points. Valley has historically offered a dividend, but future payouts depend on earnings, capital and regulator guidance. Potential attractions include franchise scale in its core markets and opportunities from industry consolidation; risks include credit deterioration in a downturn and sensitivity to interest‑rate moves. This summary is for educational purposes only and is not personalised investment advice; values can fall as well as rise.

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?

Banking On Shareholder Returns

Bank of America's new $40 billion stock buyback program highlights a broader trend of major financial institutions returning capital to shareholders. This theme identifies other large banks that may follow suit, offering similar buyback or dividend-based value.

Published: July 24, 2025

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Which Baskets Do They Appear In?

Banking On Shareholder Returns

Published: July 24, 2025

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Valley vs Essent

Comparison Snapshot

Investment Analysis

Valley

Pros

Considerations

Essent

Pros

Considerations

About The Companies

Which Baskets Do They Appear In?

Banking On Shareholder Returns

Which Baskets Do They Appear In?

Banking On Shareholder Returns

Buy VLY or ESNT in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Discover More Comparisons

Valley vs Blackstone Secured Lending

Valley vs Hanover Insurance

Valley vs MarketAxess

Frequently asked questions

What do the pros and cons tell us about the quality of each stock's business model?

What is the significance of a stock trading below tangible book value?

How should dividend yield influence a reader’s view of total return potential?

What does a beta of 1.11 imply for Valley in relation to market movements?

How do revenue and net income trends affect a stock’s risk profile?

How do cyclical factors influence Essent’s business model?

What regulatory considerations should a reader note for these two stocks?

How should one compare diversification within each company’s revenue streams?

What do price targets and upside potential indicate in this comparison?

Is the information presented a recommendation or financial advice?

Comparison Snapshot

About The Companies