MGIC Investment (NYSE:MTG – Get Free Report) and Fold (NASDAQ:FLD – Get Free Report) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.
Valuation & Earnings
This table compares MGIC Investment and Fold”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MGIC Investment | $1.21 billion | 4.76 | $738.35 million | $3.20 | 8.80 |
| Fold | $31.79 million | 0.88 | -$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% |
Risk and Volatility
MGIC Investment has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Fold has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings for MGIC Investment and Fold, as provided by MarketBeat.
| 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 currently has a consensus target price of $30.80, indicating a potential upside of 9.43%. Fold has a consensus target price of $2.40, indicating a potential upside of 370.40%. Given Fold’s higher possible upside, analysts plainly believe Fold is more favorable than MGIC Investment.
Institutional & Insider Ownership
95.6% of MGIC Investment shares are held by institutional investors. Comparatively, 56.9% of Fold shares are held by institutional investors. 1.3% of MGIC Investment shares are held by company insiders. Comparatively, 16.7% of Fold shares are held 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.
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.
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