Everest Group (NYSE:EG – Get Free Report) and MGIC Investment (NYSE:MTG – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.
Profitability
This table compares Everest Group and MGIC Investment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Everest Group | 9.09% | 12.50% | 3.08% |
| MGIC Investment | 60.84% | 14.33% | 11.21% |
Analyst Recommendations
This is a breakdown of recent recommendations for Everest Group and MGIC Investment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Everest Group | 0 | 10 | 6 | 0 | 2.38 |
| MGIC Investment | 0 | 4 | 1 | 0 | 2.20 |
Insider & Institutional Ownership
92.6% of Everest Group shares are held by institutional investors. Comparatively, 95.6% of MGIC Investment shares are held by institutional investors. 0.7% of Everest Group shares are held by company insiders. Comparatively, 1.3% of MGIC Investment shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Everest Group and MGIC Investment”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Everest Group | $17.50 billion | 1.00 | $1.59 billion | $37.86 | 9.25 |
| MGIC Investment | $1.21 billion | 4.95 | $738.35 million | $3.14 | 8.90 |
Everest Group has higher revenue and earnings than MGIC Investment. MGIC Investment is trading at a lower price-to-earnings ratio than Everest Group, indicating that it is currently the more affordable of the two stocks.
Dividends
Everest Group pays an annual dividend of $8.00 per share and has a dividend yield of 2.3%. MGIC Investment pays an annual dividend of $0.60 per share and has a dividend yield of 2.1%. Everest Group pays out 21.1% of its earnings in the form of a dividend. MGIC Investment pays out 19.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Everest Group has increased its dividend for 1 consecutive years and MGIC Investment has increased its dividend for 6 consecutive years.
Risk & Volatility
Everest Group has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, MGIC Investment has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.
Summary
MGIC Investment beats Everest Group on 9 of the 17 factors compared between the two stocks.
About Everest Group
Everest Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Europe, and internationally. The company operates through two segment, Insurance and Reinsurance. The Reinsurance segment writes property and casualty reinsurance; and specialty lines of business through reinsurance brokers, as well as directly with ceding companies in the United States, Bermuda, Ireland, Canada, Singapore, Switzerland, and the United Kingdom. The Insurance Operations segment writes property and casualty insurance directly, as well as through brokers, surplus lines, and general agents in the United States, Bermuda, Canada, Europe, South America, Singapore, France, Germany, Spain, Canada, Chile, the United Kingdom, Ireland, and the Netherlands. The company also provides treaty and facultative reinsurance products; admitted and non-admitted insurance products; and accident and health, specialty underwriters, eversports and entertainment, and surety and credit, marine and aviation, as well as structured and property hybrid solutions. In addition, it offers commercial property and casualty insurance products through wholesale and retail brokers, surplus lines brokers, and program administrators. The company was formerly known as Everest Re Group, Ltd. and changed its name to Everest Group, Ltd. in July 2023.Everest Group, Ltd., was founded in 1973 and is headquartered in Hamilton, Bermuda.
About MGIC Investment
MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government sponsored entities in the United States, the District of Columbia, Puerto Rico, and Guam. The company offers primary mortgage insurance that provides mortgage default protection on individual loans, as well as covers unpaid loan principal, delinquent interest, and various expenses associated with the default and subsequent foreclosure. It also provides pool insurance for secondary market mortgage transactions; and contract underwriting services, as well as reinsurance. The company serves originators of residential mortgage loans, including savings institutions, commercial banks, mortgage brokers, credit unions, mortgage bankers, and other lenders. MGIC Investment Corporation was founded in 1957 and is headquartered in Milwaukee, Wisconsin.
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