Syncora (OTCMKTS:SYCRF) and MGIC Investment (NYSE:MTG) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Dividends

Syncora pays an annual dividend of $0.72 per share and has a dividend yield of 17.1%. MGIC Investment does not pay a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Syncora N/A N/A N/A
MGIC Investment 48.63% 20.48% 12.01%

Analyst Recommendations

This is a summary of current recommendations and price targets for Syncora and MGIC Investment, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Syncora 0 0 0 0 N/A
MGIC Investment 1 2 8 0 2.64

MGIC Investment has a consensus price target of $16.41, indicating a potential upside of 46.64%. Given MGIC Investment’s higher probable upside, analysts plainly believe MGIC Investment is more favorable than Syncora.

Insider and Institutional Ownership

91.7% of MGIC Investment shares are owned by institutional investors. 1.1% of Syncora shares are owned by insiders. Comparatively, 1.0% of MGIC Investment shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Syncora and MGIC Investment’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Syncora $62.12 million 6.09 $133.50 million N/A N/A
MGIC Investment $1.07 billion 3.80 $355.76 million $1.36 8.23

MGIC Investment has higher revenue and earnings than Syncora.

Volatility and Risk

Syncora has a beta of 2.31, suggesting that its share price is 131% more volatile than the S&P 500. Comparatively, MGIC Investment has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500.

Summary

MGIC Investment beats Syncora on 8 of the 12 factors compared between the two stocks.

About Syncora

Syncora Holdings Ltd., through its subsidiary, Syncora Guarantee Inc., provides financial guarantee insurance and reinsurance, and credit enhancement for the obligations of debt issuers worldwide. The company guarantees U.S. municipal bonds; asset-backed securities; debt backed by utilities and selected infrastructure projects; specialized risks, including future flow securitizations and bank deposit insurance; and collateralized debt obligations. It also invests in private debt and equity securities. The company was formerly known as Security Capital Assurance Ltd. Syncora Holdings Ltd. was founded in 2006 and is headquartered in Hamilton, Bermuda.

About MGIC Investment

MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance and ancillary services to lenders and government sponsored entities in the United States. 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 contract underwriting services; and other services for the mortgage finance industry, such as analysis of loan originations and portfolios, and mortgage lead generation services, as well as reinsurance arrangements. 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.

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