ESNT vs MTG: How Essent Group and MGIC Investment Corporation Compare (2026)
Last updated August 2026
Short answer
ESNT (Essent Group) 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.
ESNT 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 | ESNT | MTG | What it tells you |
|---|---|---|---|
| Market cap | $6.13B | $6.16B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 8.67 | 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 | 9.46 | 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 | 0.76 | 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 | 84% 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 | 1.09 | 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 ESNT 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. ESNT 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 ESNT 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 Essent Group (ESNT) do?
Essent Group Ltd (NYSE: ESNT) is a Bermuda-domiciled holding company whose main subsidiary, Essent Guaranty, writes private mortgage insurance in the United States. Private mortgage insurance covers the lender (and ultimately Fannie Mae or Freddie Mac) against loss when a borrower who put down less than 20% stops paying, which is what lets a first-time buyer close with 3% to 5% down. Essent earns a small annual premium on each insured loan and keeps earning it until the borrower refinances, sells, or builds enough equity to cancel coverage. Insurance in force was about $247.9 billion at the end of March 2026, with a weighted average FICO of 747 and persistency of 84.7%, meaning the vast majority of the book renews each year. Two smaller arms sit alongside it: Essent Re, a Bermuda reinsurer that takes GSE credit risk transfer and, more recently, third-party property and casualty business including a Lloyd's program, and Essent Title Insurance (the former Agents National Title, bought from CoreLogic in 2023) with the Boston National Title agency.
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.
ESNT 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.
- ESNT drivers: Insurance in force and 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: Essent's core exposure is the housing and employment cycle, and the current low loss ratio assumes home equity keeps converting would-be claims into sales. For MTG, mGIC's core business is highly dependent on the housing market and employment, so its main structural risk is the credit cycle.
ESNT or MTG: which should you pick?
ESNT vs MTG: the full fundamentals
ESNT. Essent carried a market capitalization near $6.1 billion on roughly 92 million shares in early August 2026, putting the stock at about 9 to 10 times trailing earnings and a modest premium to its $61.20 book value per share. Q1 2026 net income was $171.8 million, or $1.82 per diluted share, on revenue of $336.1 million, with an annualized return on average equity of 12.0%. Second-quarter results were scheduled for August 7, 2026, so figures here reflect the March quarter. Valuation numbers are approximate and move with the share price.
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): ESNT shows net premiums earned (q1 2026) ~$260M, net income (ttm) ~$686M, diluted eps (ttm) ~$7.03, book value per share ~$61 (Mar 31, 2026); 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: ESNT vs MTG
ESNT 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 ESNT and MTG exposure against your real portfolio. It is not an investment adviser.
Wondering how ESNT 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 Essent Group with AI
Connect the broker you already use and ask Walnut's AI how ESNT 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 ESNT and MTG?
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Essent Group Ltd (NYSE: ESNT) is a Bermuda-domiciled holding company whose main subsidiary, Essent Guaranty, writes private mortgage insurance in the United States. 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 ESNT 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, ESNT or MTG?
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On forward P/E (as of August 2026), ESNT trades at 8.67x and MTG at 9.08x, so ESNT 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 ESNT 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 ESNT vs MTG?
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ESNT: Essent's core exposure is the housing and employment cycle, and the current low loss ratio assumes home equity keeps converting would-be claims into sales. A sustained rise in unemployment or a decline in home prices would raise both default frequency and claim severity, and the reserve releases that have flattered recent quarters would reverse into strengthening. New insurance written of $11.1 billion in Q1 2026 depends on a purchase-origination market that affordability continues to constrain, and Essent competes for that volume with five other approved insurers plus FHA, which limits pricing power. Concentration is real: the vast majority of earnings still come from one U.S. product sold through a small number of large lenders, and changes to PMIERs capital rules, GSE policy, or the structure of Fannie Mae and Freddie Mac after conservatorship could reset the economics of the whole industry. The reinsurance expansion introduces underwriting risk in lines where Essent has a shorter track record. 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 ESNT or MTG; figures are approximate and dated (as of August 2026). Verify current data before investing.