MGIC Investment (NYSE:MTG) vs. AXA (OTCMKTS:AXAHY) Head-To-Head Analysis

AXA (OTCMKTS:AXAHY) and MGIC Investment (NYSE:MTG) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Dividends

AXA pays an annual dividend of $1.77 per share and has a dividend yield of 4.0%. MGIC Investment pays an annual dividend of $0.60 per share and has a dividend yield of 2.2%. MGIC Investment pays out 19.3% of its earnings in the form of a dividend. MGIC Investment has increased its dividend for 6 consecutive years.

Volatility & Risk

AXA has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, MGIC Investment has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.

Insider & Institutional Ownership

0.1% of AXA shares are held by institutional investors. Comparatively, 95.6% of MGIC Investment shares are held by institutional investors. 1.1% of MGIC Investment shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares AXA and MGIC Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AXA	N/A	N/A	N/A
MGIC Investment	61.96%	14.63%	11.53%

Valuation and Earnings

This table compares AXA and MGIC Investment”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AXA	$78.03 billion	1.24	$8.53 billion	N/A	N/A
MGIC Investment	$1.22 billion	5.12	$762.99 million	$3.11	8.95

AXA has higher revenue and earnings than MGIC Investment.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for AXA and MGIC Investment, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AXA	0	0	2	1	3.33
MGIC Investment	2	3	0	1	2.00

MGIC Investment has a consensus price target of $26.80, suggesting a potential downside of 3.68%. Given MGIC Investment’s higher possible upside, analysts clearly believe MGIC Investment is more favorable than AXA.

Summary

MGIC Investment beats AXA on 8 of the 15 factors compared between the two stocks.

About AXA

AXA SA, through its subsidiaries, provides insurance, asset management, and banking services worldwide. The company operates through six segments: France; Europe; AXA XL; Asia, Africa & EME-LATAM; AXA Investment Managers; and Transversal & Other segments It offers life and savings insurance products, such as savings and retirement, other health, and personal protection products. The company also provides property and casualty insurance products, including car, home, and personal or professional liability to individual and business clients; international insurance for large corporate clients in Europe; and marine and aviation insurance services, as well as property and casualty reinsurance products. In addition, it offers asset management services in the areas of various asset classes, including equities, bonds, hedge funds, private equity, and real estate for the group’s insurance companies and their clients, and retail and institutional clients. Further, the company provides motor, household, property and general liability, health, term life, whole life, universal life, endowment, deferred and immediate annuities, and other investment-based products for personal/individual and commercial/ group customers. AXA SA was founded in 1852 and is headquartered in Paris, France.

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.