Reviewing MGIC Investment (NYSE:MTG) & Fold (NASDAQ:FLD)

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

Volatility & Risk

MGIC Investment has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Fold has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for MGIC Investment and Fold, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGIC Investment	0	5	1	2	2.62
Fold	1	0	2	0	2.33

MGIC Investment presently has a consensus price target of $30.80, suggesting a potential upside of 10.76%. Fold has a consensus price target of $2.40, suggesting a potential upside of 370.50%. Given Fold’s higher probable upside, analysts clearly believe Fold is more favorable than MGIC Investment.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGIC Investment	$1.20 billion	4.77	$738.35 million	$3.20	8.69
Fold	$28.21 million	0.99	-$69.59 million	($1.54)	-0.33

MGIC Investment has higher revenue and earnings than Fold. Fold 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 MGIC Investment and Fold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MGIC Investment	59.20%	13.90%	10.81%
Fold	-258.60%	-116.17%	-55.07%

Insider and Institutional Ownership

95.6% of MGIC Investment shares are owned by institutional investors. Comparatively, 56.9% of Fold shares are owned by institutional investors. 1.3% of MGIC Investment shares are owned by insiders. Comparatively, 16.7% of Fold shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

MGIC Investment beats Fold on 12 of the 15 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 Fold

FTAC Emerald Acquisition Corp. does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, and similar business combination with one or more businesses or assets operating in the clean/renewable energy, water sustainability, agricultural technology, shared economy software, and mobility sectors. The company was formerly known as Emerald ESG Acquisition Corp. FTAC Emerald Acquisition Corp. was incorporated in 2021 and is based in Philadelphia, Pennsylvania.