Chime Financial (NASDAQ:CHYM – Get Free Report) and Essent Group (NYSE:ESNT – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.
Institutional and Insider Ownership
93.0% of Essent Group shares are held by institutional investors. 12.3% of Chime Financial shares are held by insiders. Comparatively, 3.6% of Essent Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Chime Financial and Essent Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chime Financial | -0.74% | -1.28% | -0.92% |
| Essent Group | 51.45% | 11.91% | 9.09% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chime Financial | $2.19 billion | 4.95 | -$1.01 billion | ($0.07) | -408.86 |
| Essent Group | $1.26 billion | 4.69 | $689.97 million | $7.17 | 9.17 |
Essent Group has lower revenue, but higher earnings than Chime Financial. Chime Financial is trading at a lower price-to-earnings ratio than Essent Group, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Chime Financial has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Essent Group has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings for Chime Financial and Essent Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chime Financial | 1 | 2 | 17 | 4 | 3.00 |
| Essent Group | 0 | 6 | 3 | 0 | 2.33 |
Chime Financial currently has a consensus price target of $36.40, suggesting a potential upside of 27.18%. Essent Group has a consensus price target of $71.86, suggesting a potential upside of 9.26%. Given Chime Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Chime Financial is more favorable than Essent Group.
Summary
Essent Group beats Chime Financial on 8 of the 15 factors compared between the two stocks.
About Chime Financial
Chime is a financial technology company that partners with federally regulated, FDIC-insured banks—The Bancorp Bank, N.A. and Stride Bank, N.A., Members FDIC—to provide consumer banking products and services. The company’s model is designed to eliminate common fees and simplify access to basic financial services.
Chime does not charge overdraft fees, monthly service fees, or require minimum balances. All account balances are held at partner banks and protected by applicable regulatory safeguards to ensure funds remain secure and accessible.
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.
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