MGIC Investment (NYSE:MTG – Get Free Report) and SelectQuote (NYSE:SLQT – Get Free Report) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

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

This is a breakdown of recent ratings and target prices for MGIC Investment and SelectQuote, as reported by MarketBeat.

MGIC Investment presently has a consensus target price of $26.80, suggesting a potential downside of 5.50%. SelectQuote has a consensus target price of $3.88, suggesting a potential upside of 169.10%. Given SelectQuote’s stronger consensus rating and higher probable upside, analysts clearly believe SelectQuote is more favorable than MGIC Investment.

MGIC Investment has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, SelectQuote has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

95.6% of MGIC Investment shares are held by institutional investors. Comparatively, 34.6% of SelectQuote shares are held by institutional investors. 1.1% of MGIC Investment shares are held by insiders. Comparatively, 13.1% of SelectQuote shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

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

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

MGIC Investment beats SelectQuote on 7 of the 13 factors compared between the two stocks.

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.