Arch Capital Group Ltd (ACGL)vsAmerican International Group Inc (AIG)
ACGL
Arch Capital Group Ltd
$92.30
+0.14%
FINANCIAL SERVICES · Cap: $33.47B
AIG
American International Group Inc
$74.39
+0.68%
FINANCIAL SERVICES · Cap: $40.14B
Smart Verdict
WallStSmart Research — data-driven comparison
American International Group Inc generates 34% more annual revenue ($26.61B vs $19.93B). ACGL leads profitability with a 22.1% profit margin vs 11.6%. AIG appears more attractively valued with a PEG of 0.86. ACGL earns a higher WallStSmart Score of 81/100 (A-).
ACGL
Exceptional Buy81
out of 100
Grade: A-
AIG
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+81.8%
Fair Value
$542.88
Current Price
$92.30
$450.58 discount
Margin of Safety
-112.5%
Fair Value
$36.92
Current Price
$74.39
$37.47 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 22 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 29.5%
Earnings expanding 38.8% YoY
Reasonable price relative to book value
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
Areas to Watch
No major concerns identified
ROE of 7.4% — below average capital efficiency
Revenue declined 7.2%
Earnings declined 5.6%
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull 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 : AIG
The strongest argument for AIG centers on Price/Book, Debt/Equity, PEG Ratio. PEG of 0.86 suggests the stock is reasonably priced for its growth.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : AIG
The primary concerns for AIG are Return on Equity, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
ACGL profiles as a mature stock while AIG is a declining play — different risk/reward profiles.
AIG carries more volatility with a beta of 0.58 — expect wider price swings.
ACGL is growing revenue faster at 8.5% — sustainability is the question.
ACGL generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (81/100 vs 60/100), backed by strong 22.1% margins. 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.
American International Group Inc
FINANCIAL SERVICES · INSURANCE - DIVERSIFIED · USA
American International Group, Inc., also known as AIG, is an American multinational finance and insurance corporation with operations in more than 80 countries and jurisdictions. The company operates through three core businesses: General Insurance, Life & Retirement, and a standalone technology-enabled subsidiary.
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