MTG vs HIG

For growth investors, The Hartford Financial Services Group, Inc.

(HIG) is the stronger pick with 7. 1% 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. 6x forward), making it the more compelling value choice. Analysts rate MGIC Investment Corporation (MTG) a "Buy" — based on 22 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 The Hartford Financial Services Group, Inc. at 10. 0x. On forward P/E, MGIC Investment Corporation is actually cheaper at 8. 6x. 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 The Hartford Financial Services Group, Inc. 's 0. 44x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, The Hartford Financial Services Group, Inc.

(HIG) delivered a total return of +113. 2%, compared to +103. 1% for MGIC Investment Corporation (MTG). Over 10 years, the gap is even starker: MTG returned +336. 2% versus HIG's +237. 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), The Hartford Financial Services Group, Inc.

(HIG) is the lower-risk stock at 0. 29β versus MGIC Investment Corporation's 0. 43β — meaning MTG is approximately 45% more volatile than HIG relative to the S&P 500. On balance sheet safety, MGIC Investment Corporation (MTG) carries a lower debt/equity ratio of 13% versus 23% for The Hartford Financial Services Group, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), The Hartford Financial Services Group, Inc.

(HIG) is pulling ahead at 7. 1% versus 0. 5% for MGIC Investment Corporation (MTG). On earnings-per-share growth, the picture is similar: The Hartford Financial Services Group, Inc. grew EPS 28. 7% year-over-year, compared to 8. 7% for MGIC Investment Corporation. Over a 3-year CAGR, HIG leads at 8. 9% 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 13. 6% for The Hartford Financial Services Group, Inc. — 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 16. 8% for HIG. 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 The Hartford Financial Services Group, Inc. 's 0. 44x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, MGIC Investment Corporation (MTG) trades at 8. 6x forward P/E versus 10. 1x for The Hartford Financial Services Group, Inc. — 1. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HIG: 13. 9% to $152. 00.

All stocks in this comparison pay dividends.

MGIC Investment Corporation (MTG) offers the highest yield at 2. 2%, versus 1. 5% for The Hartford Financial Services Group, Inc. (HIG).

For long-horizon retirement investors, The Hartford Financial Services Group, Inc.

(HIG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 29), 1. 5% yield, +237. 7% 10Y return). Both have compounded well over 10 years (HIG: +237. 7%, MTG: +336. 2%), 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.