Sifting through countless of stocks in the Financial Services industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in MGIC Investment Corporation or Merchants Bancorp because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how MGIC Investment Corporation and Merchants Bancorp compare based on key financial metrics to determine which better meets your investment needs.

About MGIC Investment Corporation and Merchants Bancorp

MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services in the United States, the District of Columbia, Puerto Rico, and Guam. The company offers primary 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 on the mortgage or sale of the underlying property. It also provides pool insurance for secondary market mortgage transactions; and contract underwriting services, as well as reinsurance services. 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.

Merchants Bancorp operates as the diversified bank holding company in the United States. It operates through three segments: Multi-family Mortgage Banking, Mortgage Warehousing, and Banking. The Multi-family Mortgage Banking segment engages in the mortgage banking, which originates, and services government sponsored mortgages, including bridge financing products to refinance, acquire, or reposition multi-family housing projects, and construction lending for multi-family rental housing and healthcare facilities financing. This segment also offers customized loan products for need-based skilled nursing facilities, such as independent living, assisted living, and memory care; and tax credit equity syndicator service. The Mortgage Warehousing segment funds agency eligible residential loans, as well as commercial loans to non-depository financial institutions. The Banking segment offers a range of financial products and services to consumers and businesses, which includes retail banking, commercial lending, agricultural lending, retail and correspondent residential mortgage banking, and small business administration lending. Merchants Bancorp was founded in 1990 and is headquartered in Carmel, Indiana.

Latest Financial Services and MGIC Investment Corporation, Merchants Bancorp Stock News

As of February 11, 2026, MGIC Investment Corporation had a $6.0 billion market capitalization, compared to the Financial Services median of $2.1 million. MGIC Investment Corporation’s stock is down 6.4% in 2026, up 2.9% in the previous five trading days and up 9.4% in the past year.

Currently, MGIC Investment Corporation’s price-earnings ratio is 8.8. MGIC Investment Corporation’s trailing 12-month revenue is $1.2 billion with a 60.8% net profit margin. Year-over-year quarterly sales growth most recently was -0.7%. Analysts expect adjusted earnings to reach $3.052 per share for the current fiscal year. MGIC Investment Corporation currently has a 2.2% dividend yield.

As of February 11, 2026, Merchants Bancorp had a $2.1 billion market cap, putting it in the 56th percentile of all stocks. Merchants Bancorp’s stock is up 36.7% in 2026, up 8.9% in the previous five trading days and up 10.36% in the past year.

Currently, Merchants Bancorp’s price-earnings ratio is 10.7. Merchants Bancorp’s trailing 12-month revenue is $597.2 million with a 38.8% net profit margin. Year-over-year quarterly sales growth most recently was -0.6%. Analysts expect adjusted earnings to reach $5.237 per share for the current fiscal year. Merchants Bancorp currently has a 0.9% dividend yield.

How We Compare MGIC Investment Corporation and Merchants Bancorp Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at MGIC Investment Corporation and Merchants Bancorp’s stock grades to see how they measure up against one another.

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MGIC Investment Corporation and Merchants Bancorp Stock Value Grades

Company	Ticker	Value
MGIC Investment Corporation	MTG	A
Merchants Bancorp	MBIN	B

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

MGIC Investment Corporation has a Value Score of 88, which is Deep Value. Merchants Bancorp has a Value Score of 66, which is Value.

The Value Stock Winner: MGIC Investment Corporation

As you can clearly see from the Value Grade breakdown above, MGIC Investment Corporation is considered to have better value than Merchants Bancorp. For investors who focus solely on a company’s valuation, MGIC Investment Corporation could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

MGIC Investment Corporation and Merchants Bancorp’s Momentum Grades

Company	Ticker	Momentum
MGIC Investment Corporation	MTG	C
Merchants Bancorp	MBIN	B

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

MGIC Investment Corporation has a Momentum Score of 42, which is Average. Merchants Bancorp has a Momentum Score of 75, which is Strong.

The Momentum Grade Winner: Merchants Bancorp

As you can clearly see from the Momentum Grade breakdown above, Merchants Bancorp is considered to have stronger momentum compared to MGIC Investment Corporation. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, Merchants Bancorp could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

MGIC Investment Corporation and Merchants Bancorp’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
MGIC Investment Corporation	MTG	D
Merchants Bancorp	MBIN	A

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

MGIC Investment Corporation has a Earnings Estimate Score of 37, which is Negative. Merchants Bancorp has a Earnings Estimate Score of 86, which is Very Positive.

The Earnings Estimate Revisions Grade Winner: Merchants Bancorp

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, Merchants Bancorp has a better Earnings Estimate Revisions Grade than MGIC Investment Corporation. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, Merchants Bancorp could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Other MGIC Investment Corporation and Merchants Bancorp Grades

In addition to Value, Estimate Revisions and Momentum, A+ Investor also provides grades for Growth and Quality.

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether MGIC Investment Corporation and Merchants Bancorp pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, MGIC Investment Corporation or Merchants Bancorp Stock?

Overall, MGIC Investment Corporation stock has a Value Score of 88, Momentum Score of 42 and Estimate Revisions Score of 37.

Merchants Bancorp stock has a Value Score of 66, Momentum Score of 75 and Estimate Revisions Score of 86.

Comparing MGIC Investment Corporation and Merchants Bancorp’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.