WallStSmart

Arch Capital Group Ltd (ACGL)vsBerkshire Hathaway Inc (BRK-B)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Berkshire Hathaway Inc generates 1764% more annual revenue ($371.44B vs $19.93B). ACGL leads profitability with a 22.1% profit margin vs 18.0%. ACGL appears more attractively valued with a PEG of 1.06. 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

BRK-B

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 7.5Value: 4.7Quality: 8.5
Piotroski: 4/9Altman Z: 2.49
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
BRK-BSignificantly Overvalued (-134.4%)

Margin of Safety

-134.4%

Fair Value

$211.00

Current Price

$480.94

$269.94 premium

UndervaluedFair: $211.00Overvalued

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

BRK-B6 strengths · Avg: 9.2/10
Market CapQuality
$1.06T10/10

Mega-cap, among the largest globally

Price/BookValuation
0.0x10/10

Reasonable price relative to book value

Operating MarginProfitability
33.0%10/10

Strong operational efficiency at 33.0%

Debt/EquityHealth
0.219/10

Conservative balance sheet, low leverage

P/E RatioValuation
15.9x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$4.99B8/10

Generating 5.0B in free cash flow

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

BRK-B3 concerns · Avg: 2.0/10
PEG RatioValuation
10.062/10

Expensive relative to growth rate

Revenue GrowthGrowth
-70.0%2/10

Revenue declined 70.0%

EPS GrowthGrowth
-2.5%2/10

Earnings declined 2.5%

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 : BRK-B

The strongest argument for BRK-B centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 18.0% and operating margin at 33.0%.

Bear Case : ACGL

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

Bear Case : BRK-B

The primary concerns for BRK-B are PEG Ratio, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

ACGL profiles as a mature stock while BRK-B is a declining play — different risk/reward profiles.

BRK-B carries more volatility with a beta of 0.69 — expect wider price swings.

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

BRK-B generates stronger free cash flow (5.0B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (81/100 vs 54/100), 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.

Berkshire Hathaway Inc

FINANCIAL SERVICES · INSURANCE - DIVERSIFIED · USA

Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States. The company wholly owns GEICO, Duracell, Dairy Queen, BNSF, Lubrizol, Fruit of the Loom, Helzberg Diamonds, Long & Foster, FlightSafety International, Pampered Chef, Forest River, and NetJets, and also owns 38.6% of Pilot Flying J; and significant minority holdings in public companies Kraft Heinz Company (26.7%), American Express (18.8%), The Coca-Cola Company (9.32%), Bank of America (11.9%), and Apple (6.3%).

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