ESNT vs MTG

For growth investors, Essent Group Ltd.

(ESNT) is the stronger pick with 12. 0% revenue growth year-over-year, versus 0. 5% for MGIC Investment Corporation (MTG). MGIC Investment Corporation (MTG) offers the better valuation at 8. 4x trailing P/E (8. 5x forward), making it the more compelling value choice. Analysts rate Essent Group Ltd. (ESNT) a "Buy" — based on 19 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, MGIC Investment Corporation (MTG) is the cheapest at 8.

4x versus Essent Group Ltd. at 8. 8x. On forward P/E, Essent Group Ltd. is actually cheaper at 8. 5x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: MGIC Investment Corporation wins at 0. 44x versus Essent Group Ltd. 's 2. 18x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, MGIC Investment Corporation (MTG) delivered a total return of +90.

0%, compared to +25. 5% for Essent Group Ltd. (ESNT). Over 10 years, the gap is even starker: MTG returned +324. 6% versus ESNT's +216. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Essent Group Ltd.

(ESNT) is the lower-risk stock at 0. 38β versus MGIC Investment Corporation's 0. 43β — meaning MTG is approximately 12% more volatile than ESNT relative to the S&P 500. On balance sheet safety, Essent Group Ltd. (ESNT) carries a lower debt/equity ratio of 9% versus 13% for MGIC Investment Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Essent Group Ltd.

(ESNT) is pulling ahead at 12. 0% versus 0. 5% for MGIC Investment Corporation (MTG). On earnings-per-share growth, the picture is similar: MGIC Investment Corporation grew EPS 8. 7% year-over-year, compared to 5. 4% for Essent Group Ltd.. Over a 3-year CAGR, ESNT leads at 7. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

MGIC Investment Corporation (MTG) is the more profitable company, earning 60.

8% net margin versus 57. 6% for Essent Group Ltd. — meaning it keeps 60. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MTG leads at 76. 5% versus 67. 5% for ESNT. At the gross margin level — before operating expenses — MTG leads at 94. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, MGIC Investment Corporation (MTG) is the more undervalued stock at a PEG of 0. 44x versus Essent Group Ltd. 's 2. 18x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Essent Group Ltd. (ESNT) trades at 8. 5x forward P/E versus 8. 5x for MGIC Investment Corporation — 0. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ESNT: 15. 2% to $69. 33.

All stocks in this comparison pay dividends.

MGIC Investment Corporation (MTG) offers the highest yield at 2. 2%, versus 1. 8% for Essent Group Ltd. (ESNT).

For long-horizon retirement investors, MGIC Investment Corporation (MTG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

43), 2. 2% yield, +324. 6% 10Y return). Both have compounded well over 10 years (MTG: +324. 6%, ESNT: +216. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.