ACT vs MTG: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
ACT (Enact Holdings) and MTG (MGIC Investment Corporation) share investment themes but are different businesses. The right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme.
ACT vs MTG: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | ACT | MTG | What it tells you |
|---|---|---|---|
| Market cap | $6.73B | $6.16B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 9.78 | 9.08 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 10.33 | 9.39 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.46 | 0.66 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 98% of range | 74% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 1.29 | 1.27 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Before you buy: how ACT and MTG affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. ACT and MTG share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined ACT and MTG exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Enact Holdings (ACT) do?
Enact Holdings (Nasdaq: ACT) sells private mortgage insurance. When a borrower puts down less than 20% on a conventional loan sold to Fannie Mae or Freddie Mac, the GSEs require credit enhancement, and Enact is one of a handful of companies that provides it. The economics are simple to describe and slow to unwind: Enact writes a policy, collects a recurring premium for as long as the loan stays outstanding, and pays a claim only if the borrower defaults and the foreclosure proceeds fall short. That produces a large, slow-moving book. Primary insurance in force was about $274B as of the second quarter of 2026, up roughly 2% year over year, and new insurance written in the quarter was about $15.2B. Revenue is net premiums earned plus investment income on the reserve portfolio, and because the cost base is thin, the operating margin runs above 70%.
What does MGIC Investment Corporation (MTG) do?
MGIC Investment Corporation (NYSE: MTG) is the holding company for Mortgage Guaranty Insurance Corporation, one of the largest private mortgage insurers in the United States. Private mortgage insurance protects lenders and investors against losses when borrowers with high loan-to-value mortgages (typically less than a 20% down payment) default, which lets more people buy homes with smaller down payments. MGIC earns recurring premium income from its large insurance-in-force portfolio (roughly $303 billion as of early 2026), and policies generally stay in force until borrowers refinance, sell, or build enough equity to cancel coverage. It remained the No. 1 private mortgage insurer by market share heading into 2026.
ACT vs MTG: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- ACT drivers: Insurance in force compounding on high persistency; Credit performance and reserve development.
- MTG drivers: Recurring premium from insurance-in-force; Aggressive capital return.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Enact is a concentrated bet on US mortgage credit, with essentially one product, one country and one collateral type. For MTG, mGIC's core business is highly dependent on the housing market and employment, so its main structural risk is the credit cycle.
ACT or MTG: which should you pick?
ACT vs MTG: the full fundamentals
ACT. The multiple is typical of the mortgage insurance group rather than a company-specific discount: the market generally capitalizes these earnings at a low double-digit P/E and around book value because reported profits include reserve releases that are not assumed to repeat through a credit cycle. Price to book near 1.25x with mid-teens ROE implies the market expects returns to normalize lower over time. Because roughly 81% of the shares sit with Genworth, the free float is thin, which affects liquidity and the practical relevance of index-driven flows.
MTG. MGIC trades at a low single-digit-to-high-single-digit earnings multiple and near book value (book value per share around $24), reflecting the market's discount for cyclical mortgage-insurance earnings. Q1 2026 delivered net income of about $165 million and an annualized return on equity near 13%, with revenue of about $297 million that slightly missed estimates as net premiums earned edged down year over year. Valuation figures are approximate and move with the stock price.
Headline figures (approximate, August 2026): ACT shows market cap ~$6.7B, revenue (ttm) ~$1.25B, net income (ttm) ~$683M, p/e (trailing / forward) ~10.3x / ~9.9x; MTG shows revenue (ttm) ~$1.2B, net income (ttm) ~$738M, q1 2026 net income ~$165M ($0.76/sh), market cap ~$5.6B.
The bottom line: ACT vs MTG
ACT and MTG are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined ACT and MTG exposure against your real portfolio. It is not an investment adviser.
Wondering how ACT or MTG fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Enact Holdings with AI
Connect the broker you already use and ask Walnut's AI how ACT fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between ACT and MTG?
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Enact Holdings (Nasdaq: ACT) sells private mortgage insurance. MGIC Investment Corporation (NYSE: MTG) is the holding company for Mortgage Guaranty Insurance Corporation, one of the largest private mortgage insurers in the United States. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is ACT or MTG the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, ACT or MTG?
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On forward P/E (as of August 2026), ACT trades at 9.78x and MTG at 9.08x, so MTG is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both ACT and MTG?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of ACT vs MTG?
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ACT: Enact is a concentrated bet on US mortgage credit, with essentially one product, one country and one collateral type. A housing downturn combined with rising unemployment would raise delinquencies, turn favorable reserve development into reserve strengthening, and hit earnings faster than premiums could reprice. Policy risk is real and recurring: FHFA capital rules (PMIERs), GSE pricing through loan-level adjustments, and FHA premium changes can each shift the economics of private mortgage insurance without any change in Enact's own execution, since FHA is a direct substitute for the same borrower. Competition among the six private mortgage insurers runs through proprietary risk-based pricing engines that are not publicly disclosed, so price competition is difficult for outside investors to observe until it shows up in returns. Genworth's roughly 81% ownership means the public float is limited, minority holders have little influence, and Enact's capital return policy is shaped by a parent with its own funding needs including its CareScout long-term care initiatives. As of August 2026 no securities-fraud class action against Enact was identified in public filings or court dockets. MTG: MGIC's core business is highly dependent on the housing market and employment, so its main structural risk is the credit cycle. If unemployment rises or home values fall, delinquencies and insurance claims can increase quickly, pressuring earnings and capital. As mortgage originations and refinancing activity stay subdued, growth in insurance in force and premiums earned can slow, and net premiums earned already declined year over year in Q1 2026. Housing affordability remains a persistent headwind to new business volume. Competition on pricing among the six major insurers, plus regulatory and capital-requirement changes, adds further uncertainty.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell ACT or MTG; figures are approximate and dated (as of August 2026). Verify current data before investing.