Chime Financial (NASDAQ:CHYM) vs. Essent Group (NYSE:ESNT) Financial Analysis

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

Valuation and Earnings

This table compares Chime Financial and Essent Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chime Financial	$2.19 billion	5.41	-$1.01 billion	($0.07)	-446.43
Essent Group	$1.26 billion	4.83	$689.97 million	$7.17	9.44

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

Profitability

This table compares Chime Financial and Essent Group’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%
Essent Group	51.45%	11.91%	9.09%

Volatility and Risk

Chime Financial has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Essent Group has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Chime Financial and Essent Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chime Financial	1	2	17	4	3.00
Essent Group	0	5	3	0	2.38

Chime Financial presently has a consensus price target of $36.40, indicating a potential upside of 16.48%. Essent Group has a consensus price target of $71.86, indicating a potential upside of 6.12%. Given Chime Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Chime Financial is more favorable than Essent Group.

Insider & Institutional Ownership

93.0% of Essent Group shares are held by institutional investors. 12.3% of Chime Financial shares are held by company insiders. Comparatively, 3.6% of Essent Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Essent Group beats Chime Financial on 8 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 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.