MGIC Investment (NYSE:MTG) and Oscar Health (NYSE:OSCR) Head to Head Analysis

MGIC Investment (NYSE:MTG) and Oscar Health (NYSE:OSCR) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Insider and Institutional Ownership

95.6% of MGIC Investment shares are owned by institutional investors. Comparatively, 75.7% of Oscar Health shares are owned by institutional investors. 1.3% of MGIC Investment shares are owned by insiders. Comparatively, 24.4% of Oscar Health shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares MGIC Investment and Oscar Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MGIC Investment	59.63%	14.01%	10.96%
Oscar Health	-0.30%	-3.26%	-0.57%

Risk and Volatility

MGIC Investment has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, Oscar Health has a beta of 2.37, suggesting that its stock price is 137% more volatile than the S&P 500.

Earnings and Valuation

This table compares MGIC Investment and Oscar Health”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGIC Investment	$1.21 billion	4.44	$738.35 million	$3.15	8.08
Oscar Health	$11.70 billion	0.75	-$443.15 million	($0.59)	-49.07

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for MGIC Investment and Oscar Health, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGIC Investment	0	4	1	0	2.20
Oscar Health	1	8	3	0	2.17

MGIC Investment currently has a consensus price target of $28.25, suggesting a potential upside of 10.95%. Oscar Health has a consensus price target of $20.78, suggesting a potential downside of 28.23%. Given MGIC Investment’s stronger consensus rating and higher probable upside, equities research analysts clearly believe MGIC Investment is more favorable than Oscar Health.

Summary

MGIC Investment beats Oscar Health on 10 of the 14 factors compared between the two stocks.

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.

About Oscar Health

Oscar Health, Inc. operates as a health insurance in the United States. The company offers health plans in individual and small group markets, as well as +Oscar, a technology driven platform that help providers and payors directly enable their shift to value-based care. It also provides reinsurance products. The company was formerly known as Mulberry Health Inc. and changed its name to Oscar Health, Inc. in January 2021. Oscar Health, Inc. was incorporated in 2012 and is headquartered in New York, New York.