ESNT vs FNF

For growth investors, Fidelity National Financial, Inc.

(FNF) is the stronger pick with 15. 9% revenue growth year-over-year, versus 12. 0% for Essent Group Ltd. (ESNT). Essent Group Ltd. (ESNT) offers the better valuation at 8. 8x 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, Essent Group Ltd.

(ESNT) is the cheapest at 8. 8x versus Fidelity National Financial, Inc. at 11. 0x. On forward P/E, Essent Group Ltd. is actually cheaper at 8. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Essent Group Ltd. wins at 2. 18x versus Fidelity National Financial, Inc. 's 2. 24x.

Over the past 5 years, Fidelity National Financial, Inc.

(FNF) delivered a total return of +37. 0%, compared to +25. 5% for Essent Group Ltd. (ESNT). Over 10 years, the gap is even starker: ESNT returned +216. 5% versus FNF's +181. 8%. 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 Fidelity National Financial, Inc. 's 0. 58β — meaning FNF is approximately 52% 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 55% for Fidelity National Financial, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Fidelity National Financial, Inc.

(FNF) is pulling ahead at 15. 9% versus 12. 0% for Essent Group Ltd. (ESNT). On earnings-per-share growth, the picture is similar: Fidelity National Financial, Inc. grew EPS 143. 5% 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.

Essent Group Ltd.

(ESNT) is the more profitable company, earning 57. 6% net margin versus 9. 5% for Fidelity National Financial, Inc. — meaning it keeps 57. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ESNT leads at 67. 5% versus 13. 0% for FNF. 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, Essent Group Ltd. (ESNT) is the more undervalued stock at a PEG of 2. 18x versus Fidelity National Financial, Inc. 's 2. 24x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Essent Group Ltd. (ESNT) trades at 8. 5x forward P/E versus 8. 9x for Fidelity National Financial, Inc. — 0. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FNF: 30. 9% to $67. 00.

All stocks in this comparison pay dividends.

Fidelity National Financial, Inc. (FNF) offers the highest yield at 3. 8%, versus 1. 8% for Essent Group Ltd. (ESNT).

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, +216. 5% 10Y return). Both have compounded well over 10 years (ESNT: +216. 5%, FNF: +181. 8%), 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.

In terms of investment character: ESNT is a small-cap deep-value stock; FNF is a mid-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.