Financial Comparison: Repay (NASDAQ:RPAY) & MGIC Investment (NYSE:MTG)

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

Analyst Ratings

This is a breakdown of current ratings for MGIC Investment and Repay, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGIC Investment	0	5	1	2	2.62
Repay	1	3	3	0	2.29

MGIC Investment currently has a consensus target price of $30.80, indicating a potential upside of 12.33%. Repay has a consensus target price of $5.25, indicating a potential upside of 35.66%. Given Repay’s higher probable upside, analysts plainly believe Repay is more favorable than MGIC Investment.

Risk and Volatility

MGIC Investment has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Repay has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGIC Investment	$1.21 billion	4.63	$738.35 million	$3.20	8.57
Repay	$309.26 million	1.19	-$256.72 million	($2.04)	-1.90

MGIC Investment has higher revenue and earnings than Repay. Repay 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 Repay’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%
Repay	-49.57%	11.03%	4.28%

Insider & Institutional Ownership

95.6% of MGIC Investment shares are held by institutional investors. Comparatively, 82.7% of Repay shares are held by institutional investors. 1.3% of MGIC Investment shares are held by insiders. Comparatively, 12.0% of Repay shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

MGIC Investment beats Repay on 11 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 Repay

Repay Holdings Corporation, payments technology company, provides integrated payment processing solutions to industry-oriented markets in the United States. It operates through two segments: Consumer Payments and Business Payments. The company's payment processing solutions enable consumers and businesses to make payments using electronic payment methods. It also offers a range of solutions relating to electronic payment methods, including credit and debit card processing, automated clearing house (ACH) processing, e-cash, and digital wallet services; virtual credit card processing, enhanced ACH processing, instant funding, clearing and settlement, and communication solutions; and proprietary payment channels that include Web-based, virtual terminal, online client portal, mobile application, text-to-pay, interactive voice response, and point of sale services. It serves customers primarily operating in the personal loans, automotive loans, receivables management, and business-to-business verticals through direct sales representatives and software integration partners. The company was founded in 2006 and is headquartered in Atlanta, Georgia.