Comparing Essent Group (NYSE:ESNT) and Corpay (NYSE:CPAY)

Corpay (NYSE:CPAY) and Essent Group (NYSE:ESNT) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Profitability

This table compares Corpay and Essent Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corpay	22.72%	42.18%	6.34%
Essent Group	51.45%	11.91%	9.09%

Insider & Institutional Ownership

98.8% of Corpay shares are owned by institutional investors. Comparatively, 93.0% of Essent Group shares are owned by institutional investors. 5.2% of Corpay shares are owned by company insiders. Comparatively, 3.6% of Essent Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Corpay and Essent Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corpay	$4.53 billion	5.68	$1.07 billion	$16.43	23.85
Essent Group	$1.26 billion	4.50	$689.97 million	$7.17	8.81

Corpay has higher revenue and earnings than Essent Group. Essent Group is trading at a lower price-to-earnings ratio than Corpay, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for Corpay and Essent Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corpay	0	3	12	0	2.80
Essent Group	0	6	3	0	2.33

Corpay currently has a consensus target price of $438.93, indicating a potential upside of 12.01%. Essent Group has a consensus target price of $71.86, indicating a potential upside of 13.70%. Given Essent Group’s higher possible upside, analysts clearly believe Essent Group is more favorable than Corpay.

Volatility & Risk

Corpay has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Essent Group has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.

Summary

Corpay beats Essent Group on 11 of the 14 factors compared between the two stocks.

About Corpay

Volatus is a leader in innovative global aerial solutions for intelligence and cargo. With over 100 years of combined institutional knowledge in aviation, Volatus provides comprehensive solutions using both piloted and remotely piloted aircraft systems for a wide array of industries, including oil and gas, energy utilities, healthcare, public safety, and infrastructure. The Company is committed to enhancing operational efficiency, safety, and sustainability through cutting-edge aerial technologies.

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.