Head-To-Head Analysis: Chime Financial (NASDAQ:CHYM) versus MGIC Investment (NYSE:MTG)

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

Insider & Institutional Ownership

95.6% of MGIC Investment shares are owned by institutional investors. 1.3% of MGIC Investment shares are owned by company insiders. Comparatively, 12.3% of Chime Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for MGIC Investment and Chime Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGIC Investment	0	4	1	2	2.71
Chime Financial	1	2	17	4	3.00

MGIC Investment presently has a consensus price target of $30.60, suggesting a potential upside of 3.05%. Chime Financial has a consensus price target of $36.40, suggesting a potential upside of 20.01%. Given Chime Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Chime Financial is more favorable than MGIC Investment.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MGIC Investment	59.20%	13.90%	10.81%
Chime Financial	-0.74%	-1.28%	-0.92%

Valuation and Earnings

This table compares MGIC Investment and Chime Financial”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	5.02	$738.35 million	$3.20	9.28
Chime Financial	$2.19 billion	5.25	-$1.01 billion	($0.07)	-433.29

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

Risk & Volatility

MGIC Investment has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Chime Financial has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.

Summary

MGIC Investment beats Chime Financial on 8 of the 15 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 Chime Financial

Chime is a financial technology company that partners with federally regulated, FDIC-insured banks—The Bancorp Bank, N.A. and Stride Bank, N.A., Members FDIC—to provide consumer banking products and services. The company’s model is designed to eliminate common fees and simplify access to basic financial services.

Chime does not charge overdraft fees, monthly service fees, or require minimum balances. All account balances are held at partner banks and protected by applicable regulatory safeguards to ensure funds remain secure and accessible.