Analyzing MGIC Investment (NYSE:MTG) and Chime Financial (NASDAQ:CHYM)

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

Earnings & Valuation

This table compares Chime Financial and MGIC Investment”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chime Financial	$2.46 billion	4.08	-$1.01 billion	($0.07)	-378.00
MGIC Investment	$1.21 billion	4.94	$738.35 million	$3.20	9.14

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

Insider and Institutional Ownership

95.6% of MGIC Investment shares are owned by institutional investors. 12.3% of Chime Financial 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, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Chime Financial and MGIC Investment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chime Financial	1	2	17	4	3.00
MGIC Investment	0	5	1	2	2.62

Chime Financial currently has a consensus target price of $36.40, suggesting a potential upside of 37.57%. MGIC Investment has a consensus target price of $30.60, suggesting a potential upside of 4.63%. Given Chime Financial’s stronger consensus rating and higher possible upside, research analysts plainly believe Chime Financial is more favorable than MGIC Investment.

Profitability

This table compares Chime Financial and MGIC Investment’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%
MGIC Investment	59.20%	13.90%	10.81%

Risk & Volatility

Chime Financial has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, MGIC Investment has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.

Summary

MGIC Investment beats Chime Financial on 9 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 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.