MGIC Investment (NYSE:MTG) vs. Finance of America Companies (NYSE:FOA) Head to Head Contrast

Finance of America Companies (NYSE:FOA) and MGIC Investment (NYSE:MTG) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Volatility & Risk

Finance of America Companies has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500. Comparatively, MGIC Investment has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.

Insider and Institutional Ownership

97.2% of Finance of America Companies shares are held by institutional investors. Comparatively, 95.6% of MGIC Investment shares are held by institutional investors. 35.4% of Finance of America Companies shares are held by insiders. Comparatively, 1.3% of MGIC Investment shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Finance of America Companies and MGIC Investment”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Finance of America Companies	$497.43 million	0.39	$45.24 million	($3.01)	-3.77
MGIC Investment	$1.21 billion	4.86	$738.35 million	$3.20	8.99

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

Profitability

This table compares Finance of America Companies and MGIC Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Finance of America Companies	-0.10%	28.39%	0.35%
MGIC Investment	59.20%	13.90%	10.81%

Analyst Ratings

This is a summary of recent recommendations and price targets for Finance of America Companies and MGIC Investment, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Finance of America Companies	2	1	2	0	2.00
MGIC Investment	0	6	1	1	2.38

Finance of America Companies presently has a consensus target price of $30.50, suggesting a potential upside of 168.79%. MGIC Investment has a consensus target price of $30.80, suggesting a potential upside of 7.04%. Given Finance of America Companies’ higher possible upside, equities research analysts plainly believe Finance of America Companies is more favorable than MGIC Investment.

Summary

MGIC Investment beats Finance of America Companies on 9 of the 15 factors compared between the two stocks.

About Finance of America Companies

Finance of America Companies Inc. a financial service holding company, through its subsidiaries, engages in the operation of a retirement solutions platform in the United States. It operates through two segments: Retirement Solutions and Portfolio Management. The Retirement Solutions segment engages in the loan origination activities comprising home equity conversion, proprietary reverse, and hybrid mortgage loans for senior homeowners. The Portfolio Management segment provides product development, loan securitization, loan sales, risk management, servicing oversight, and asset management services for borrowers and investors. The company was founded in 2013 and is headquartered in Plano, Texas.

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.