Head to Head Contrast: MGIC Investment (NYSE:MTG) versus Fidelis Insurance (NYSE:FIHL)

MGIC Investment (NYSE:MTG) and Fidelis Insurance (NYSE:FIHL) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.

Volatility and Risk

MGIC Investment has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Fidelis Insurance has a beta of 0.36, meaning that its share price is 64% 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 2.3%. Fidelis Insurance pays an annual dividend of $0.60 per share and has a dividend yield of 2.6%. MGIC Investment pays out 19.0% of its earnings in the form of a dividend. Fidelis Insurance pays out 27.1% 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.

Earnings & Valuation

This table compares MGIC Investment and Fidelis Insurance”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	4.54	$738.35 million	$3.15	8.27
Fidelis Insurance	$2.17 billion	1.01	$225.50 million	$2.21	10.31

MGIC Investment has higher earnings, but lower revenue than Fidelis Insurance. MGIC Investment is trading at a lower price-to-earnings ratio than Fidelis Insurance, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MGIC Investment	59.63%	14.01%	10.96%
Fidelis Insurance	9.02%	8.62%	1.62%

Insider and Institutional Ownership

95.6% of MGIC Investment shares are held by institutional investors. Comparatively, 82.0% of Fidelis Insurance shares are held by institutional investors. 1.3% of MGIC Investment shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for MGIC Investment and Fidelis Insurance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGIC Investment	0	4	1	0	2.20
Fidelis Insurance	2	3	3	0	2.13

MGIC Investment currently has a consensus price target of $28.25, suggesting a potential upside of 8.51%. Fidelis Insurance has a consensus price target of $21.92, suggesting a potential downside of 3.83%. Given MGIC Investment’s stronger consensus rating and higher possible upside, research analysts plainly believe MGIC Investment is more favorable than Fidelis Insurance.

Summary

MGIC Investment beats Fidelis Insurance on 13 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 Fidelis Insurance

Fidelis Insurance Holdings Limited, a specialty insurer, provides insurance and reinsurance solutions in Bermuda, the Republic of Ireland, and the United Kingdom. It operates in three segments: Specialty, Reinsurance, and Bespoke segments. The Specialty segment offers aviation and aerospace, energy, marine, property direct and facultative, and other specialty risk solutions. The Reinsurance segment provides property, retrocession, and whole account reinsurance solutions. The Bespoke segment offers customized risk solutions for clients that include credit and political risk, as well as other risk transfer opportunities, including political violence and terrorism, limited cyber reinsurance, tax liabilities, title, transactional liabilities, and other bespoke solutions. Fidelis Insurance Holdings Limited was incorporated in 2014 and is headquartered in Pembroke, Bermuda.