ACT
Enact Holdings, Inc.
Insurance - Specialty
Market Cap$6.08B
5Y Perf.+96.4%
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Stock Comparison
ACT vs PFSI
Revenue, margins, valuation, and 5-year total return — side by side.
PFSI
PennyMac Financial Services, Inc.
Financial - Mortgages
Market Cap$4.54B
5Y Perf.+42.2%
ACT vs PFSI — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ACT | PFSI |
|---|---|---|
| Industry | Insurance - Specialty | Financial - Mortgages |
| Market Cap | $6.08B | $4.54B |
| Revenue (TTM) | $1.24B | $4.36B |
| Net Income (TTM) | $676M | $507M |
| Gross Margin | 59.9% | 91.4% |
| Operating Margin | 52.2% | 34.6% |
| Forward P/E | 8.9x | 7.0x |
| Total Debt | $744M | $23.06B |
| Cash & Equiv. | $582M | $302M |
ACT vs PFSI — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
ACT
PFSI
| Stock | Sep 21 | May 26 | Return |
|---|---|---|---|
| Enact Holdings, Inc. (ACT) | 100 | 196.4 | +96.4% |
| PennyMac Financial … (PFSI) | 100 | 142.2 | +42.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: ACT vs PFSI
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: ACT leads in 5 of 7 categories, making it the strongest pick for profitability and margin quality and capital preservation and lower volatility. PennyMac Financial Services, Inc. is the stronger pick specifically for growth and revenue expansion and valuation and capital efficiency. As sector peers, any of these can serve as alternatives in the same allocation.
ACT
Enact Holdings, Inc.
The Insurance Pick
ACT carries the broadest edge in this set and is the clearest fit for income & stability and sleep-well-at-night.
- Dividend streak 1 yrs, beta 0.28, yield 1.9%
- Lower volatility, beta 0.28, Low D/E 13.9%, current ratio 6.86x
- Beta 0.28, yield 1.9%, current ratio 6.86x
Best for: income & stability and sleep-well-at-night
PFSI
PennyMac Financial Services, Inc.
The Banking Pick
PFSI is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 173.8%, EPS growth 59.2%
- 6.2% 10Y total return vs ACT's 138.7%
- 173.8% NII/revenue growth vs ACT's 2.4%
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | PFSI | 173.8% NII/revenue growth vs ACT's 2.4% |
| Value | PFSI | Lower P/E (7.0x vs 8.9x) |
| Quality / Margins | ACT | 54.6% margin vs PFSI's 11.5% |
| Stability / Safety | ACT | Beta 0.28 vs PFSI's 0.93, lower leverage |
| Dividends | ACT | 1.9% yield, 1-year raise streak, vs PFSI's 1.3% |
| Momentum (1Y) | ACT | +21.1% vs PFSI's -8.0% |
| Efficiency (ROA) | ACT | 9.8% ROA vs PFSI's 1.8%, ROIC 12.1% vs 4.4% |
ACT vs PFSI — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
FY 2025
ACT vs PFSI — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLACTLAGGINGPFSI
PFSIPennyMac Financial Se…
1leads
ACTEnact Holdings, Inc.
4leads
6 Total Categories
CATEGORYLEADERvs PFSIMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
ACT4/5
Valuation MetricsMultiples, price ratios, and targets
PFSI4/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
ACT9/9
Total Returns1Y, 3Y, 5Y total returns with dividends
ACT5/6
Risk & VolatilityBeta, volatility, and downside exposure
ACT2/2
Analyst OutlookRatings, price targets, and dividends
Tied
—
Income & Cash Flow (Last 12 Months)
ACT leads this category, winning 4 of 5 comparable metrics.
Income & Cash Flow (Last 12 Months)
PFSI is the larger business by revenue, generating $4.4B annually — 3.5x ACT's $1.2B. ACT is the more profitable business, keeping 54.6% of every revenue dollar as net income compared to PFSI's 11.5%.
| Metric | ACTEnact Holdings, I… | PFSIPennyMac Financia… |
|---|---|---|
| RevenueTrailing 12 months | $1.2B | $4.4B |
| EBITDAEarnings before interest/tax | $685M | $1.0B |
| Net IncomeAfter-tax profit | $676M | $507M |
| Free Cash FlowCash after capex | $722M | -$3.8B |
| Gross MarginGross profit ÷ Revenue | +59.9% | +91.4% |
| Operating MarginEBIT ÷ Revenue | +52.2% | +34.6% |
| Net MarginNet income ÷ Revenue | +54.6% | +11.5% |
| FCF MarginFCF ÷ Revenue | +58.2% | -32.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +1.7% | — |
| EPS Growth (YoY)Latest quarter vs prior year | +9.3% | +7.7% |
ACT leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
PFSI leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
At 9.3x trailing earnings, PFSI trades at a 2% valuation discount to ACT's 9.5x P/E. On an enterprise value basis, ACT's 6.9x EV/EBITDA is more attractive than PFSI's 18.1x.
| Metric | ACTEnact Holdings, I… | PFSIPennyMac Financia… |
|---|---|---|
| Market CapShares × price | $6.1B | $4.5B |
| Enterprise ValueMkt cap + debt − cash | $6.2B | $27.3B |
| Trailing P/EPrice ÷ TTM EPS | 9.53x | 9.35x |
| Forward P/EPrice ÷ next-FY EPS est. | 8.92x | 7.04x |
| PEG RatioP/E ÷ EPS growth rate | 0.65x | — |
| EV / EBITDAEnterprise value multiple | 6.87x | 18.05x |
| Price / SalesMarket cap ÷ Revenue | 4.94x | 1.04x |
| Price / BookPrice ÷ Book value/share | 1.20x | 1.09x |
| Price / FCFMarket cap ÷ FCF | 8.39x | — |
PFSI leads this category, winning 4 of 5 comparable metrics.
Profitability & Efficiency
ACT leads this category, winning 9 of 9 comparable metrics.
Profitability & Efficiency
ACT delivers a 12.7% return on equity — every $100 of shareholder capital generates $13 in annual profit, vs $12 for PFSI. ACT carries lower financial leverage with a 0.14x debt-to-equity ratio, signaling a more conservative balance sheet compared to PFSI's 5.35x. On the Piotroski fundamental quality scale (0–9), ACT scores 7/9 vs PFSI's 4/9, reflecting strong financial health.
| Metric | ACTEnact Holdings, I… | PFSIPennyMac Financia… |
|---|---|---|
| ROE (TTM)Return on equity | +12.7% | +12.0% |
| ROA (TTM)Return on assets | +9.8% | +1.8% |
| ROICReturn on invested capital | +12.1% | +4.4% |
| ROCEReturn on capital employed | +13.0% | +10.4% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 4 |
| Debt / EquityFinancial leverage | 0.14x | 5.35x |
| Net DebtTotal debt minus cash | $162M | $22.8B |
| Cash & Equiv.Liquid assets | $582M | $302M |
| Total DebtShort + long-term debt | $744M | $23.1B |
| Interest CoverageEBIT ÷ Interest expense | 13.69x | 0.96x |
ACT leads this category, winning 9 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
ACT leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in ACT five years ago would be worth $23,865 today (with dividends reinvested), compared to $15,907 for PFSI. Over the past 12 months, ACT leads with a +21.1% total return vs PFSI's -8.0%. The 3-year compound annual growth rate (CAGR) favors ACT at 24.5% vs PFSI's 16.0% — a key indicator of consistent wealth creation.
| Metric | ACTEnact Holdings, I… | PFSIPennyMac Financia… |
|---|---|---|
| YTD ReturnYear-to-date | +9.2% | -33.7% |
| 1-Year ReturnPast 12 months | +21.1% | -8.0% |
| 3-Year ReturnCumulative with dividends | +92.8% | +56.3% |
| 5-Year ReturnCumulative with dividends | +138.7% | +59.1% |
| 10-Year ReturnCumulative with dividends | +138.7% | +624.6% |
| CAGR (3Y)Annualised 3-year return | +24.5% | +16.0% |
ACT leads this category, winning 5 of 6 comparable metrics.
Risk & Volatility
ACT leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
ACT is the less volatile stock with a 0.28 beta — it tends to amplify market swings less than PFSI's 0.93 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ACT currently trades 96.1% from its 52-week high vs PFSI's 54.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ACTEnact Holdings, I… | PFSIPennyMac Financia… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.28x | 0.93x |
| 52-Week HighHighest price in past year | $44.80 | $160.36 |
| 52-Week LowLowest price in past year | $33.94 | $82.67 |
| % of 52W HighCurrent price vs 52-week peak | +96.1% | +54.2% |
| RSI (14)Momentum oscillator 0–100 | 47.4 | 41.5 |
| Avg Volume (50D)Average daily shares traded | 286K | 609K |
ACT leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Evenly matched — ACT and PFSI each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates ACT as "Hold" and PFSI as "Buy". Consensus price targets imply 64.5% upside for PFSI (target: $143) vs 4.5% for ACT (target: $45). For income investors, ACT offers the higher dividend yield at 1.88% vs PFSI's 1.34%.
| Metric | ACTEnact Holdings, I… | PFSIPennyMac Financia… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $45.00 | $143.00 |
| # AnalystsCovering analysts | 8 | 20 |
| Dividend YieldAnnual dividend ÷ price | +1.9% | +1.3% |
| Dividend StreakConsecutive years of raises | 1 | 2 |
| Dividend / ShareAnnual DPS | $0.81 | $1.16 |
| Buyback YieldShare repurchases ÷ mkt cap | +6.3% | +0.1% |
Evenly matched — ACT and PFSI each lead in 1 of 2 comparable metrics.
Key Takeaway
ACT leads in 4 of 6 categories (Income & Cash Flow, Profitability & Efficiency). PFSI leads in 1 (Valuation Metrics). 1 tied.
Best OverallEnact Holdings, Inc. (ACT)Leads 4 of 6 categories
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ACT vs PFSI: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is ACT or PFSI a better buy right now?
For growth investors, PennyMac Financial Services, Inc.
(PFSI) is the stronger pick with 173. 8% revenue growth year-over-year, versus 2. 4% for Enact Holdings, Inc. (ACT). PennyMac Financial Services, Inc. (PFSI) offers the better valuation at 9. 3x trailing P/E (7. 0x forward), making it the more compelling value choice. Analysts rate PennyMac Financial Services, Inc. (PFSI) a "Buy" — based on 20 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.
02Which has the better valuation — ACT or PFSI?
On trailing P/E, PennyMac Financial Services, Inc.
(PFSI) is the cheapest at 9. 3x versus Enact Holdings, Inc. at 9. 5x. On forward P/E, PennyMac Financial Services, Inc. is actually cheaper at 7. 0x.
03Which is the better long-term investment — ACT or PFSI?
Over the past 5 years, Enact Holdings, Inc.
(ACT) delivered a total return of +138. 7%, compared to +59. 1% for PennyMac Financial Services, Inc. (PFSI). Over 10 years, the gap is even starker: PFSI returned +624. 6% versus ACT's +138. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — ACT or PFSI?
By beta (market sensitivity over 5 years), Enact Holdings, Inc.
(ACT) is the lower-risk stock at 0. 28β versus PennyMac Financial Services, Inc. 's 0. 93β — meaning PFSI is approximately 233% more volatile than ACT relative to the S&P 500. On balance sheet safety, Enact Holdings, Inc. (ACT) carries a lower debt/equity ratio of 14% versus 5% for PennyMac Financial Services, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — ACT or PFSI?
By revenue growth (latest reported year), PennyMac Financial Services, Inc.
(PFSI) is pulling ahead at 173. 8% versus 2. 4% for Enact Holdings, Inc. (ACT). On earnings-per-share growth, the picture is similar: PennyMac Financial Services, Inc. grew EPS 59. 2% year-over-year, compared to 3. 4% for Enact Holdings, Inc.. 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.
06Which has better profit margins — ACT or PFSI?
Enact Holdings, Inc.
(ACT) is the more profitable company, earning 54. 8% net margin versus 11. 5% for PennyMac Financial Services, Inc. — meaning it keeps 54. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ACT leads at 69. 8% versus 34. 6% for PFSI. At the gross margin level — before operating expenses — PFSI leads at 91. 4%, 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.
07Is ACT or PFSI more undervalued right now?
On forward earnings alone, PennyMac Financial Services, Inc.
(PFSI) trades at 7. 0x forward P/E versus 8. 9x for Enact Holdings, Inc. — 1. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PFSI: 64. 5% to $143. 00.
08Which pays a better dividend — ACT or PFSI?
All stocks in this comparison pay dividends.
Enact Holdings, Inc. (ACT) offers the highest yield at 1. 9%, versus 1. 3% for PennyMac Financial Services, Inc. (PFSI).
09Is ACT or PFSI better for a retirement portfolio?
For long-horizon retirement investors, Enact Holdings, Inc.
(ACT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 28), 1. 9% yield, +138. 7% 10Y return). Both have compounded well over 10 years (ACT: +138. 7%, PFSI: +624. 6%), 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.
10What are the main differences between ACT and PFSI?
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.
In terms of investment character: ACT is a small-cap deep-value stock; PFSI is a small-cap high-growth stock. 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.
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Revenue Growth>
%
(ACT: 1.7% · PFSI: 173.8%)Net Margin>
%
(ACT: 54.6% · PFSI: 11.5%)P/E Ratio<
x
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