WallStSmart

Arch Capital Group Ltd. (ACGL)vsBrown & Brown Inc (BRO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 216% more annual revenue ($19.78B vs $6.26B). ACGL leads profitability with a 24.6% profit margin vs 18.4%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 79/100 (B+).

ACGL

Strong Buy

79

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

BRO

Strong Buy

71

out of 100

Grade: B

Growth: 6.7Profit: 7.5Value: 5.0Quality: 4.5
Piotroski: 2/9Altman Z: 1.15

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

Profit MarginProfitability
24.6%9/10

Keeps 25 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

BRO3 strengths · Avg: 9.3/10
Operating MarginProfitability
47.2%10/10

Strong operational efficiency at 47.2%

Revenue GrowthGrowth
35.7%10/10

Revenue surging 35.7% year-over-year

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Areas to Watch

ACGL2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

BRO4 concerns · Avg: 2.8/10
PEG RatioValuation
1.514/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-7.9%2/10

Earnings declined 7.9%

Altman Z-ScoreHealth
1.152/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, EPS Growth. Profitability is solid with margins at 24.6% and operating margin at 25.3%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : BRO

The strongest argument for BRO centers on Operating Margin, Revenue Growth, Price/Book. Profitability is solid with margins at 18.4% and operating margin at 47.2%. Revenue growth of 35.7% demonstrates continued momentum.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth, Altman Z-Score.

Bear Case : BRO

The primary concerns for BRO are PEG Ratio, Piotroski F-Score, EPS Growth.

Key Dynamics to Monitor

ACGL profiles as a declining stock while BRO is a growth play — different risk/reward profiles.

BRO carries more volatility with a beta of 0.62 — expect wider price swings.

BRO is growing revenue faster at 35.7% — sustainability is the question.

ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (79/100 vs 71/100), backed by strong 24.6% margins. Both earn "Strong Buy" and "Strong 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.

Brown & Brown Inc

FINANCIAL SERVICES · INSURANCE BROKERS · USA

Brown & Brown, Inc. markets and sells insurance products and services in the United States, Bermuda, Canada, the Cayman Islands, Ireland, and the United Kingdom. The company is headquartered in Daytona Beach, Florida.

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