Virtu vs Enact

Virtu and Enact are compared here, examining their business models, financial performance, and market context in a neutral, accessible way. This page presents information about how these firms operate within their sectors and the market. Educational content, not financial advice.

Virtu and Enact are compared here, examining their business models, financial performance, and market context in a neutral, accessible way. This page presents information about how these firms operate...

Comparison Snapshot

Key Financial Metrics

VIRT

Metric

ACT

$5.60B

Market Cap

$5.55B

16.95%

Potential Profit

-0.06%

Buy

Analyst Rating

Buy

Investment Analysis

Virtu

VIRT

Pros

Virtu Financial delivered strong earnings growth, with profits up 124% over the past year driven by robust market-making activity.
The company maintains a high gross margin of around 57%, reflecting efficient trading operations and cost management.
Virtu offers a reliable dividend and has a history of share buybacks, supporting shareholder returns.

Considerations

Virtu's business is highly sensitive to market volatility and trading volumes, which can lead to significant earnings fluctuations.
The company carries a high debt-to-equity ratio, increasing financial risk during periods of rising interest rates.
Revenue is concentrated in the market-making segment, making the company vulnerable to regulatory changes in trading practices.

Enact

ACT

Pros

Enact Holdings benefits from a leading position in the US mortgage insurance market, supporting stable premium income.
The company maintains a strong balance sheet with low leverage, providing resilience in economic downturns.
Enact has demonstrated consistent profitability and efficient underwriting, contributing to solid returns on equity.

Considerations

Enact's earnings are closely tied to the US housing market, making it vulnerable to housing downturns and interest rate shifts.
The mortgage insurance sector faces regulatory scrutiny, which could impact future profitability and business practices.
Growth opportunities are limited by market saturation and competition from other mortgage insurers.

About The Companies

Virtu (VIRT)

Virtu Financial, Inc. (Class A) (VIRT) is an electronic market maker and liquidity provider operating across equities, derivatives, foreign exchange and fixed income markets. With a market capitalisation of about $5.09 billion, Virtu leverages high-frequency trading technology, low-latency infrastructure and scale to quote prices and capture bid–ask spreads, while also offering execution and related data services to institutional clients. Revenue and profitability are closely tied to market volumes and volatility, so earnings can be cyclical and variable. Competitive advantages include proprietary trading systems and broad market access, but risks include regulatory change, technological arms races, and periods of low volatility that can compress margins. The stock may suit investors who understand trading-driven earnings and operational complexity; this is general educational information, not personalised investment advice — values can rise and fall and past performance does not guarantee future results.

Enact (ACT)

Enact Holdings, Inc. is a prominent American company operating in the private mortgage insurance sector. Through its primary subsidiary, Enact Mortgage Insurance Corporation, it provides insurance that protects lenders and investors from losses if a borrower defaults on their home loan. This service is crucial as it helps facilitate the sale of mortgages in the secondary market to key institutions like Fannie Mae and Freddie Mac. Enact serves a diverse customer base, including national banks, local credit unions, and non-bank mortgage lenders, establishing long-standing relationships across the industry. As a key player in the US housing finance system, the company's performance is closely linked to the health of the residential property market. For investors, understanding Enact means looking at its role in enabling homeownership and the economic factors that influence the mortgage industry. Remember, the value of any investment can go down as well as up.

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Comparison Snapshot