WallStSmart

Arch Capital Group Ltd (ACGL)vsArch Capital Group Ltd (ACGLN)

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Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 0% more annual revenue ($19.93B vs $19.93B). ACGLN leads profitability with a 22.1% profit margin vs 22.1%. ACGLN trades at a lower P/E of 3.6x. ACGL earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

81

out of 100

Grade: A-

Growth: 8.7Profit: 8.0Value: 10.0Quality: 6.5
Piotroski: 5/9

ACGLN

Buy

52

out of 100

Grade: C-

Growth: 8.7Profit: 8.0Value: 8.3Quality: 6.5
Piotroski: 6/9Altman Z: 1.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ACGLUndervalued (+81.8%)

Margin of Safety

+81.8%

Fair Value

$542.88

Current Price

$92.30

$450.58 discount

UndervaluedFair: $542.88Overvalued
ACGLNUndervalued (+92.0%)

Margin of Safety

+92.0%

Fair Value

$219.54

Current Price

$16.52

$203.02 discount

UndervaluedFair: $219.54Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

EPS GrowthGrowth
38.8%8/10

Earnings expanding 38.8% YoY

ACGLN6 strengths · Avg: 9.0/10
P/E RatioValuation
3.6x10/10

Attractively priced relative to earnings

Price/BookValuation
0.3x10/10

Reasonable price relative to book value

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

EPS GrowthGrowth
38.8%8/10

Earnings expanding 38.8% YoY

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

ACGLN1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 22.1% and operating margin at 29.5%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : ACGLN

The strongest argument for ACGLN centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 22.1% and operating margin at 29.5%.

Bear Case : ACGL

No major red flags identified for ACGL, but monitor valuation.

Bear Case : ACGLN

The primary concerns for ACGLN are Altman Z-Score.

Key Dynamics to Monitor

ACGLN carries more volatility with a beta of 0.36 — expect wider price swings.

ACGLN is growing revenue faster at 8.5% — sustainability is the question.

ACGLN generates stronger free cash flow (1.4B), providing more financial flexibility.

Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ACGL scores higher overall (81/100 vs 52/100), backed by strong 22.1% margins. ACGLN offers better value entry with a 92.0% margin of safety. Both earn "Exceptional Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Arch Capital Group Ltd

FINANCIAL SERVICES · INSURANCE - DIVERSIFIED · USA

Arch Capital Group Ltd., offers insurance, reinsurance and mortgage products worldwide. The company is headquartered in Pembroke, Bermuda.

Arch Capital Group Ltd

FINANCIAL SERVICES · INSURANCE - DIVERSIFIED · USA

Arch Capital Group Ltd. (ACGLN) is a leading global insurer and reinsurer, actively engaged in property, casualty, and mortgage insurance markets across North America, Europe, and Asia. The company is recognized for its disciplined underwriting practices and advanced risk management approaches, which enable it to adeptly manage a diverse portfolio of exposures. With a robust capital foundation and a focus on operational efficiency, Arch Capital is well-equipped to meet the evolving needs of its clients while driving sustainable shareholder returns. Furthermore, the firm's proactive investments in technology and data analytics enhance its competitive edge in a rapidly changing industry landscape.

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