MGIC Investment (US:MTG) ZACKSยท2024-06-19 14:45Industry Overview - Multiline insurers are expected to grow due to better pricing, prudent underwriting, increased exposure, and faster economic recovery, with the industry rising 5.4% year to date compared to the Finance sector's 3.8% increase [1] - Accelerated digitalization and an improving rate environment are anticipated to enhance the industry's operational efficiency and investment income [2] - The transition to green energy and related insurance products, along with exposure to intangible assets, presents growth opportunities for the industry [4] Company Analysis - MGIC Investment has a market capitalization of $5.6 billion and provides private mortgage insurance and related services, while Enact Holdings has a market capitalization of $4.7 billion and offers similar products [3] - MGIC Investment's shares have increased by 9% year to date, outperforming the industry's growth of 5.4% and Enact Holdings' rise of 4.3% [7] - MGIC Investment has a Return on Equity (ROE) of 15%, exceeding Enact Holdings' ROE of 14.6% and the industry average of 14.1% [22] - MGIC Investment's debt-to-capital ratio is 11.2, significantly lower than the industry average of 36.1 and Enact Holdings' 13.6, indicating better leverage [23] - MGIC Investment's net margin for the trailing 12 months was 62.8%, higher than Enact Holdings' 55.8%, suggesting better profitability [27] Comparative Metrics - The Zacks Consensus Estimate for Enact Holdings' 2024 revenues implies a year-over-year increase of 7.4%, while MGIC Investment's estimate suggests a 4.6% increase [14] - Enact Holdings has a dividend yield of 2.46%, which is better than MGIC Investment's 2.19% [25] - MGIC Investment has a VGM Score of B, while Enact Holdings has a VGM Score of C, indicating that MGIC Investment is better positioned [13]