Eightco (NASDAQ:ORBS – Get Free Report) and Essent Group (NYSE:ESNT – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.
Risk and Volatility
Eightco has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500. Comparatively, Essent Group has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.
Earnings and Valuation
This table compares Eightco and Essent Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Eightco | $32.98 million | 10.75 | -$262.01 million | ($0.22) | -3.75 |
| Essent Group | $1.26 billion | 4.43 | $689.97 million | $7.17 | 8.67 |
Essent Group has higher revenue and earnings than Eightco. Eightco is trading at a lower price-to-earnings ratio than Essent Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
12.9% of Eightco shares are owned by institutional investors. Comparatively, 93.0% of Essent Group shares are owned by institutional investors. 3.4% of Eightco shares are owned by insiders. Comparatively, 3.6% of Essent Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Eightco and Essent Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Eightco | 1 | 0 | 0 | 0 | 1.00 |
| Essent Group | 0 | 6 | 3 | 0 | 2.33 |
Essent Group has a consensus target price of $71.14, indicating a potential upside of 14.48%. Given Essent Group’s stronger consensus rating and higher probable upside, analysts plainly believe Essent Group is more favorable than Eightco.
Profitability
This table compares Eightco and Essent Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Eightco | -1,260.96% | -78.14% | -74.31% |
| Essent Group | 51.45% | 11.91% | 9.09% |
Summary
Essent Group beats Eightco on 11 of the 13 factors compared between the two stocks.
About Eightco
Eightco Holdings Inc. provides bitcoin mining equipment and co-location services. It also manufactures and sells container boards, corrugated products, and specialty paper products in North America. The company was incorporated in 1966 and is headquartered in Safety Harbor, Florida.
About Essent Group
Essent Group Ltd., through its subsidiaries, provides private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. Its mortgage insurance products include primary, pool, and master policy. The company also provides information technology maintenance and development services; customer support-related services; underwriting consulting; and contract underwriting services, as well as risk management products and title insurance and settlement services. It serves the originators of residential mortgage loans, such as regulated depository institutions, mortgage banks, credit unions, and other lenders. Essent Group Ltd. was incorporated in 2008 and is based in Hamilton, Bermuda.
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