Comparing Essent Group (ESNT) & Its Rivals

Essent Group (NYSE:ESNT) is one of 341 publicly-traded companies in the “Financial Services” industry, but how does it contrast to its rivals? We will compare Essent Group to related businesses based on the strength of its risk, institutional ownership, dividends, valuation, analyst recommendations, earnings and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Essent Group and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Essent Group	0	7	3	0	2.30
Essent Group Competitors	1977	6923	11684	444	2.50

Essent Group presently has a consensus price target of $70.75, indicating a potential upside of 3.02%. As a group, “Financial Services” companies have a potential downside of 6.45%. Given Essent Group’s higher probable upside, analysts plainly believe Essent Group is more favorable than its rivals.

Dividends

Essent Group pays an annual dividend of $1.40 per share and has a dividend yield of 2.0%. Essent Group pays out 19.5% of its earnings in the form of a dividend. As a group, “Financial Services” companies pay a dividend yield of 4.2% and pay out -94.0% of their earnings in the form of a dividend. Essent Group has increased its dividend for 6 consecutive years. Essent Group lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Essent Group and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Essent Group	51.45%	11.91%	9.09%
Essent Group Competitors	-412.58%	-39.71%	-5.80%

Valuation & Earnings

This table compares Essent Group and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Essent Group	$1.26 billion	$689.97 million	9.58
Essent Group Competitors	$6.34 billion	$1.09 billion	8.20

Essent Group’s rivals have higher revenue and earnings than Essent Group. Essent Group is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

93.0% of Essent Group shares are owned by institutional investors. Comparatively, 43.0% of shares of all “Financial Services” companies are owned by institutional investors. 3.6% of Essent Group shares are owned by insiders. Comparatively, 21.9% of shares of all “Financial Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Essent Group has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Essent Group’s rivals have a beta of 2.51, indicating that their average share price is 151% more volatile than the S&P 500.

Summary

Essent Group rivals beat Essent Group on 9 of the 15 factors compared.

Essent Group Company Profile

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.