ESNT
Essent Group Ltd.
Insurance - Specialty
Market Cap$5.87B
5Y Perf.+82.1%
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Stock Comparison
ESNT vs PFSI
Revenue, margins, valuation, and 5-year total return — side by side.
PFSI
PennyMac Financial Services, Inc.
Financial - Mortgages
Market Cap$4.56B
5Y Perf.+160.5%
ESNT vs PFSI — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ESNT | PFSI |
|---|---|---|
| Industry | Insurance - Specialty | Financial - Mortgages |
| Market Cap | $5.87B | $4.56B |
| Revenue (TTM) | $1.31B | $4.36B |
| Net Income (TTM) | $703M | $507M |
| Gross Margin | 89.7% | 91.4% |
| Operating Margin | 63.6% | 34.6% |
| Forward P/E | 8.5x | 7.1x |
| Total Debt | $494M | $23.06B |
| Cash & Equiv. | $131M | $302M |
ESNT vs PFSI — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
ESNT
PFSI
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Essent Group Ltd. (ESNT) | 100 | 182.1 | +82.1% |
| PennyMac Financial … (PFSI) | 100 | 260.5 | +160.5% |
Price return only. Dividends and distributions are not included.
Quick Verdict: ESNT vs PFSI
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: ESNT 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.
ESNT
Essent Group Ltd.
The Insurance Pick
ESNT carries the broadest edge in this set and is the clearest fit for income & stability and sleep-well-at-night.
- Dividend streak 6 yrs, beta 0.38, yield 1.8%
- Lower volatility, beta 0.38, Low D/E 8.8%
- Beta 0.38, yield 1.8%
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%
- 6.0% 10Y total return vs ESNT's 216.5%
- 173.8% NII/revenue growth vs ESNT's 12.0%
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | PFSI | 173.8% NII/revenue growth vs ESNT's 12.0% |
| Value | PFSI | Lower P/E (7.1x vs 8.5x) |
| Quality / Margins | ESNT | 53.7% margin vs PFSI's 11.5% |
| Stability / Safety | ESNT | Beta 0.38 vs PFSI's 0.93, lower leverage |
| Dividends | ESNT | 1.8% yield, 6-year raise streak, vs PFSI's 1.3% |
| Momentum (1Y) | ESNT | +5.1% vs PFSI's -9.2% |
| Efficiency (ROA) | ESNT | 9.6% ROA vs PFSI's 1.8%, ROIC 11.3% vs 4.4% |
ESNT vs PFSI — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2024
FY 2025
ESNT vs PFSI — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLESNTLAGGINGPFSI
PFSIPennyMac Financial Se…
2leads
ESNTEssent Group Ltd.
4leads
6 Total Categories
CATEGORYLEADERvs PFSIMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
ESNT3/5
Valuation MetricsMultiples, price ratios, and targets
PFSI3/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
ESNT9/9
Total Returns1Y, 3Y, 5Y total returns with dividends
PFSI4/6
Risk & VolatilityBeta, volatility, and downside exposure
ESNT2/2
Analyst OutlookRatings, price targets, and dividends
ESNT2/2
Income & Cash Flow (Last 12 Months)
ESNT leads this category, winning 3 of 5 comparable metrics.
Income & Cash Flow (Last 12 Months)
PFSI is the larger business by revenue, generating $4.4B annually — 3.3x ESNT's $1.3B. ESNT is the more profitable business, keeping 53.7% of every revenue dollar as net income compared to PFSI's 11.5%.
| Metric | ESNTEssent Group Ltd. | PFSIPennyMac Financia… |
|---|---|---|
| RevenueTrailing 12 months | $1.3B | $4.4B |
| EBITDAEarnings before interest/tax | $838M | $1.0B |
| Net IncomeAfter-tax profit | $703M | $507M |
| Free Cash FlowCash after capex | $837M | -$3.8B |
| Gross MarginGross profit ÷ Revenue | +89.7% | +91.4% |
| Operating MarginEBIT ÷ Revenue | +63.6% | +34.6% |
| Net MarginNet income ÷ Revenue | +53.7% | +11.5% |
| FCF MarginFCF ÷ Revenue | +64.0% | -32.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +0.7% | — |
| EPS Growth (YoY)Latest quarter vs prior year | +1.2% | +7.7% |
ESNT leads this category, winning 3 of 5 comparable metrics.
Valuation Metrics
PFSI leads this category, winning 3 of 5 comparable metrics.
Valuation Metrics
At 8.8x trailing earnings, ESNT trades at a 7% valuation discount to PFSI's 9.4x P/E. On an enterprise value basis, ESNT's 7.2x EV/EBITDA is more attractive than PFSI's 18.1x.
| Metric | ESNTEssent Group Ltd. | PFSIPennyMac Financia… |
|---|---|---|
| Market CapShares × price | $5.9B | $4.6B |
| Enterprise ValueMkt cap + debt − cash | $6.2B | $27.3B |
| Trailing P/EPrice ÷ TTM EPS | 8.78x | 9.41x |
| Forward P/EPrice ÷ next-FY EPS est. | 8.48x | 7.08x |
| PEG RatioP/E ÷ EPS growth rate | 2.26x | — |
| EV / EBITDAEnterprise value multiple | 7.23x | 18.07x |
| Price / SalesMarket cap ÷ Revenue | 4.63x | 1.05x |
| Price / BookPrice ÷ Book value/share | 1.14x | 1.09x |
| Price / FCFMarket cap ÷ FCF | 6.86x | — |
PFSI leads this category, winning 3 of 5 comparable metrics.
Profitability & Efficiency
ESNT leads this category, winning 9 of 9 comparable metrics.
Profitability & Efficiency
ESNT delivers a 12.2% return on equity — every $100 of shareholder capital generates $12 in annual profit, vs $12 for PFSI. ESNT carries lower financial leverage with a 0.09x debt-to-equity ratio, signaling a more conservative balance sheet compared to PFSI's 5.35x. On the Piotroski fundamental quality scale (0–9), ESNT scores 5/9 vs PFSI's 4/9, reflecting solid financial health.
| Metric | ESNTEssent Group Ltd. | PFSIPennyMac Financia… |
|---|---|---|
| ROE (TTM)Return on equity | +12.2% | +12.0% |
| ROA (TTM)Return on assets | +9.6% | +1.8% |
| ROICReturn on invested capital | +11.3% | +4.4% |
| ROCEReturn on capital employed | +12.6% | +10.4% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 4 |
| Debt / EquityFinancial leverage | 0.09x | 5.35x |
| Net DebtTotal debt minus cash | $362M | $22.8B |
| Cash & Equiv.Liquid assets | $131M | $302M |
| Total DebtShort + long-term debt | $494M | $23.1B |
| Interest CoverageEBIT ÷ Interest expense | 26.45x | 0.96x |
ESNT leads this category, winning 9 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
PFSI leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in PFSI five years ago would be worth $15,353 today (with dividends reinvested), compared to $12,554 for ESNT. Over the past 12 months, ESNT leads with a +5.1% total return vs PFSI's -9.2%. The 3-year compound annual growth rate (CAGR) favors PFSI at 15.7% vs ESNT's 14.3% — a key indicator of consistent wealth creation.
| Metric | ESNTEssent Group Ltd. | PFSIPennyMac Financia… |
|---|---|---|
| YTD ReturnYear-to-date | -6.4% | -33.3% |
| 1-Year ReturnPast 12 months | +5.1% | -9.2% |
| 3-Year ReturnCumulative with dividends | +49.3% | +54.9% |
| 5-Year ReturnCumulative with dividends | +25.5% | +53.5% |
| 10-Year ReturnCumulative with dividends | +216.5% | +598.9% |
| CAGR (3Y)Annualised 3-year return | +14.3% | +15.7% |
PFSI leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
ESNT leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
ESNT is the less volatile stock with a 0.38 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. ESNT currently trades 89.7% from its 52-week high vs PFSI's 54.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ESNTEssent Group Ltd. | PFSIPennyMac Financia… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.38x | 0.93x |
| 52-Week HighHighest price in past year | $67.09 | $160.36 |
| 52-Week LowLowest price in past year | $55.22 | $82.67 |
| % of 52W HighCurrent price vs 52-week peak | +89.7% | +54.6% |
| RSI (14)Momentum oscillator 0–100 | 42.9 | 47.2 |
| Avg Volume (50D)Average daily shares traded | 635K | 601K |
ESNT leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
ESNT leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates ESNT as "Buy" and PFSI as "Buy". Consensus price targets imply 63.5% upside for PFSI (target: $143) vs 15.2% for ESNT (target: $69). For income investors, ESNT offers the higher dividend yield at 1.84% vs PFSI's 1.33%.
| Metric | ESNTEssent Group Ltd. | PFSIPennyMac Financia… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $69.33 | $143.00 |
| # AnalystsCovering analysts | 19 | 20 |
| Dividend YieldAnnual dividend ÷ price | +1.8% | +1.3% |
| Dividend StreakConsecutive years of raises | 6 | 2 |
| Dividend / ShareAnnual DPS | $1.11 | $1.16 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.9% | +0.1% |
ESNT leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
ESNT leads in 4 of 6 categories (Income & Cash Flow, Profitability & Efficiency). PFSI leads in 2 (Valuation Metrics, Total Returns).
Best OverallEssent Group Ltd. (ESNT)Leads 4 of 6 categories
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ESNT vs PFSI: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is ESNT 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 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.
02Which has the better valuation — ESNT or PFSI?
On trailing P/E, Essent Group Ltd.
(ESNT) is the cheapest at 8. 8x versus PennyMac Financial Services, Inc. at 9. 4x. On forward P/E, PennyMac Financial Services, Inc. is actually cheaper at 7. 1x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — ESNT or PFSI?
Over the past 5 years, PennyMac Financial Services, Inc.
(PFSI) delivered a total return of +53. 5%, compared to +25. 5% for Essent Group Ltd. (ESNT). Over 10 years, the gap is even starker: PFSI returned +598. 9% 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.
04Which is safer — ESNT or PFSI?
By beta (market sensitivity over 5 years), Essent Group Ltd.
(ESNT) is the lower-risk stock at 0. 38β versus PennyMac Financial Services, Inc. 's 0. 93β — meaning PFSI is approximately 145% 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 5% for PennyMac Financial Services, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — ESNT or PFSI?
By revenue growth (latest reported year), PennyMac Financial Services, Inc.
(PFSI) is pulling ahead at 173. 8% versus 12. 0% for Essent Group Ltd. (ESNT). On earnings-per-share growth, the picture is similar: PennyMac Financial Services, Inc. grew EPS 59. 2% year-over-year, compared to 5. 4% for Essent Group Ltd.. 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 — ESNT or PFSI?
Essent Group Ltd.
(ESNT) is the more profitable company, earning 57. 6% net margin versus 11. 5% for PennyMac Financial Services, 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 34. 6% for PFSI. 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.
07Is ESNT or PFSI more undervalued right now?
On forward earnings alone, PennyMac Financial Services, Inc.
(PFSI) trades at 7. 1x forward P/E versus 8. 5x for Essent Group Ltd. — 1. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PFSI: 63. 5% to $143. 00.
08Which pays a better dividend — ESNT or PFSI?
All stocks in this comparison pay dividends.
Essent Group Ltd. (ESNT) offers the highest yield at 1. 8%, versus 1. 3% for PennyMac Financial Services, Inc. (PFSI).
09Is ESNT or PFSI better for a retirement portfolio?
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%, PFSI: +598. 9%), 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 ESNT 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: ESNT 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>
%
(ESNT: 0.7% · PFSI: 173.8%)Net Margin>
%
(ESNT: 53.7% · PFSI: 11.5%)P/E Ratio<
x
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