MGIC Investment (NYSE:MTG) vs. Heritage Global (NASDAQ:HGBL) Head to Head Survey

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

Risk and Volatility

Heritage Global has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, MGIC Investment has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.

Insider and Institutional Ownership

33.5% of Heritage Global shares are owned by institutional investors. Comparatively, 95.6% of MGIC Investment shares are owned by institutional investors. 15.6% of Heritage Global shares are owned by insiders. Comparatively, 1.3% of MGIC Investment shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Heritage Global	-26.89%	7.21%	5.39%
MGIC Investment	58.12%	13.81%	10.66%

Valuation and Earnings

This table compares Heritage Global and MGIC Investment”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heritage Global	$50.98 million	0.81	$3.59 million	($0.40)	-2.99
MGIC Investment	$1.21 billion	4.51	$738.35 million	$3.22	8.55

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Heritage Global and MGIC Investment, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heritage Global	1	0	1	0	2.00
MGIC Investment	0	6	1	1	2.38

Heritage Global currently has a consensus price target of $3.00, indicating a potential upside of 151.05%. MGIC Investment has a consensus price target of $31.00, indicating a potential upside of 12.60%. Given Heritage Global’s higher possible upside, research analysts clearly believe Heritage Global is more favorable than MGIC Investment.

Summary

MGIC Investment beats Heritage Global on 12 of the 14 factors compared between the two stocks.

About Heritage Global

Heritage Global, Inc. (NASDAQ:HGBL) is an asset services company that specializes in the valuation, marketing and disposition of surplus, underutilized and distressed assets. The company serves businesses, lenders, insolvency professionals and other organizations seeking to sell or acquire industrial equipment, machinery, inventory and other tangible assets. Through its operating businesses, including Heritage Global Partners, the company provides auction and liquidation services, negotiated sales, asset advisory services and valuation expertise.

About MGIC Investment

MGIC Investment Corporation is a mortgage insurance company whose principal subsidiary, Mortgage Guaranty Insurance Corporation (MGIC), provides private mortgage insurance to lenders. Its coverage helps protect lenders from losses if borrowers default on their mortgages and can help qualified borrowers purchase homes with smaller down payments. Founded in 1957 by Max H. Karl, MGIC is widely recognized as a pioneer in the private mortgage insurance industry. The company serves mortgage lenders and borrowers across the United States.