MTG vs HIG vs AFG vs FAF

For growth investors, First American Financial Corporation (FAF) is the stronger pick with 21.

6% revenue growth year-over-year, versus -1. 3% for American Financial Group, Inc. (AFG). MGIC Investment Corporation (MTG) offers the better valuation at 8. 5x 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.

5x versus American Financial Group, Inc. at 13. 1x. 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: The Hartford Financial Services Group, Inc. wins at 0. 44x versus American Financial Group, Inc. 's 2. 81x — 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 +112. 7%, compared to +20. 7% for First American Financial Corporation (FAF). Over 10 years, the gap is even starker: MTG returned +333. 0% versus FAF's +138. 4%. 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 First American Financial Corporation's 0. 59β — meaning FAF is approximately 102% 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 38% for American Financial Group, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), First American Financial Corporation (FAF) is pulling ahead at 21.

6% versus -1. 3% for American Financial Group, Inc. (AFG). On earnings-per-share growth, the picture is similar: First American Financial Corporation grew EPS 376. 2% year-over-year, compared to -4. 6% for American Financial Group, Inc.. 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 8. 4% for First American Financial Corporation — 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 11. 1% for FAF. At the gross margin level — before operating expenses — FAF leads at 95. 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, The Hartford Financial Services Group, Inc. (HIG) is the more undervalued stock at a PEG of 0. 44x versus American Financial Group, Inc. 's 2. 81x. 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 11. 8x for American Financial Group, Inc. — 3. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FAF: 19. 0% to $83. 00.

All stocks in this comparison pay dividends.

American Financial Group, Inc. (AFG) offers the highest yield at 5. 5%, versus 1. 6% 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. 6% yield, +233. 5% 10Y return). Both have compounded well over 10 years (HIG: +233. 5%, FAF: +138. 4%), 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: MTG is a small-cap deep-value stock; HIG is a mid-cap deep-value stock; AFG is a mid-cap deep-value stock; FAF 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.