Marqeta (NASDAQ:MQ) versus Essent Group (NYSE:ESNT) Head-To-Head Survey

Essent Group (NYSE:ESNT) and Marqeta (NASDAQ:MQ) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.

Insider and Institutional Ownership

93.0% of Essent Group shares are owned by institutional investors. Comparatively, 78.6% of Marqeta shares are owned by institutional investors. 3.6% of Essent Group shares are owned by insiders. Comparatively, 13.7% of Marqeta shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Essent Group and Marqeta”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Essent Group	$1.35 billion	4.38	$689.97 million	$7.17	9.18
Marqeta	$624.88 million	3.12	-$13.93 million	$0.11	170.45

Essent Group has higher revenue and earnings than Marqeta. Essent Group is trading at a lower price-to-earnings ratio than Marqeta, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Essent Group and Marqeta, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Essent Group	0	6	3	0	2.33
Marqeta	1	8	1	0	2.00

Essent Group presently has a consensus target price of $71.14, indicating a potential upside of 8.14%. Marqeta has a consensus target price of $19.71, indicating a potential upside of 5.14%. Given Essent Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Essent Group is more favorable than Marqeta.

Profitability

This table compares Essent Group and Marqeta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Essent Group	51.45%	11.91%	9.09%
Marqeta	1.53%	1.36%	0.71%

Volatility and Risk

Essent Group has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Marqeta has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.

Summary

Essent Group beats Marqeta on 11 of the 14 factors compared between the two stocks.

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.

About Marqeta

Marqeta, Inc. operates a cloud-based open application programming interface platform that delivers card issuing and transaction processing services. It offers its solutions in various verticals, including financial services, on-demand services, expense management, and e-commerce enablement, as well as buy now, pay later. Marqeta, Inc. was incorporated in 2010 and is headquartered in Oakland, California.