Head-To-Head Review: MGIC Investment (NYSE:MTG) and Everest Group (NYSE:EG)

MGIC Investment (NYSE:MTG) and Everest Group (NYSE:EG) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MGIC Investment	60.84%	14.33%	11.21%
Everest Group	9.09%	12.50%	3.08%

Risk and Volatility

MGIC Investment has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Everest Group has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500.

Dividends

MGIC Investment pays an annual dividend of $0.60 per share and has a dividend yield of 2.1%. Everest Group pays an annual dividend of $8.00 per share and has a dividend yield of 2.3%. MGIC Investment pays out 19.1% of its earnings in the form of a dividend. Everest Group pays out 21.1% 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. MGIC Investment has raised its dividend for 6 consecutive years and Everest Group has raised its dividend for 1 consecutive years.

Insider and Institutional Ownership

95.6% of MGIC Investment shares are held by institutional investors. Comparatively, 92.6% of Everest Group shares are held by institutional investors. 1.3% of MGIC Investment shares are held by company insiders. Comparatively, 0.7% of Everest Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares MGIC Investment and Everest Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGIC Investment	$1.21 billion	5.10	$738.35 million	$3.14	9.17
Everest Group	$17.50 billion	1.00	$1.59 billion	$37.86	9.26

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.

Analyst Recommendations

This is a summary of recent ratings and price targets for MGIC Investment and Everest Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGIC Investment	0	4	1	0	2.20
Everest Group	0	10	6	0	2.38

MGIC Investment presently has a consensus price target of $28.50, indicating a potential downside of 1.00%. Everest Group has a consensus price target of $366.14, indicating a potential upside of 4.39%. Given Everest Group’s stronger consensus rating and higher possible upside, analysts plainly believe Everest Group is more favorable than MGIC Investment.

Summary

MGIC Investment beats Everest Group on 9 of the 17 factors compared between the two stocks.

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.

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.