AGO vs ESNT

For growth investors, Essent Group Ltd.

(ESNT) is the stronger pick with 12. 0% revenue growth year-over-year, versus -3. 2% for Assured Guaranty Ltd. (AGO). Assured Guaranty Ltd. (AGO) offers the better valuation at 8. 1x trailing P/E (12. 4x forward), making it the more compelling value choice. Analysts rate Assured Guaranty Ltd. (AGO) a "Buy" — based on 9 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, Assured Guaranty Ltd.

(AGO) is the cheapest at 8. 1x versus Essent Group Ltd. at 9. 0x. On forward P/E, Essent Group Ltd. is actually cheaper at 8. 7x — 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: Assured Guaranty Ltd. wins at 1. 09x versus Essent Group Ltd. 's 2. 23x — a reasonable growth-adjusted valuation.

Over the past 5 years, Assured Guaranty Ltd.

(AGO) delivered a total return of +81. 6%, compared to +34. 2% for Essent Group Ltd. (ESNT). Over 10 years, the gap is even starker: AGO returned +249. 3% versus ESNT's +226. 7%. 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 Assured Guaranty Ltd. 's 0. 45β — meaning AGO is approximately 17% 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 29% for Assured Guaranty Ltd. — 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 -3. 2% for Assured Guaranty Ltd. (AGO). On earnings-per-share growth, the picture is similar: Assured Guaranty Ltd. grew EPS 48. 2% 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.

Assured Guaranty Ltd.

(AGO) is the more profitable company, earning 63. 8% net margin versus 57. 6% for Essent Group Ltd. — meaning it keeps 63. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AGO leads at 84. 0% versus 67. 5% for ESNT. At the gross margin level — before operating expenses — ESNT leads at 93. 6%, 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, Assured Guaranty Ltd. (AGO) is the more undervalued stock at a PEG of 1. 09x versus Essent Group Ltd. 's 2. 23x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Essent Group Ltd. (ESNT) trades at 8. 7x forward P/E versus 12. 4x for Assured Guaranty Ltd. — 3. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AGO: 13. 9% to $94. 00.

All stocks in this comparison pay dividends.

Essent Group Ltd. (ESNT) offers the highest yield at 1. 8%, versus 1. 7% for Assured Guaranty Ltd. (AGO).

For long-horizon retirement investors, Essent Group Ltd.

(ESNT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 38), 1. 8% yield, +226. 7% 10Y return). Both have compounded well over 10 years (ESNT: +226. 7%, AGO: +249. 3%), 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.