Arch Capital Group Ltd. (ACGL)vsBritish American Tobacco p.l.c. (BTI)
ACGL
Arch Capital Group Ltd.
$93.80
-0.76%
FINANCIAL SERVICES · Cap: $33.09B
BTI
British American Tobacco p.l.c.
$58.28
+0.34%
CONSUMER DEFENSIVE · Cap: $125.67B
Smart Verdict
WallStSmart Research — data-driven comparison
British American Tobacco p.l.c. generates 29% more annual revenue ($25.61B vs $19.78B). BTI leads profitability with a 30.3% profit margin vs 24.6%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 79/100 (B+).
ACGL
Strong Buy79
out of 100
Grade: B+
BTI
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ACGL.
Margin of Safety
+23.4%
Fair Value
$78.80
Current Price
$58.28
$20.52 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 94.6% YoY
Every $100 of equity generates 21 in profit
Keeps 25 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Keeps 30 of every $100 in revenue as profit
Strong operational efficiency at 34.6%
Large-cap with strong market position
Attractively priced relative to earnings
Generating 3.0B in free cash flow
Areas to Watch
Revenue declined 3.3%
Expensive relative to growth rate
Trading at 10.1x book value
0.1% revenue growth
1.6% earnings growth
Comparative Analysis Report
WallStSmart ResearchBull 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 : BTI
The strongest argument for BTI centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 30.3% and operating margin at 34.6%.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth.
Bear Case : BTI
The primary concerns for BTI are PEG Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
ACGL profiles as a declining stock while BTI is a value play — different risk/reward profiles.
ACGL carries more volatility with a beta of 0.33 — expect wider price swings.
BTI is growing revenue faster at 0.1% — sustainability is the question.
BTI generates stronger free cash flow (3.0B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (79/100 vs 60/100), backed by strong 24.6% margins. BTI offers better value entry with a 23.4% margin of safety. Both earn "Strong 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.
British American Tobacco p.l.c.
CONSUMER DEFENSIVE · TOBACCO · USA
British American Tobacco plc offers tobacco and nicotine products to consumers around the world. The company is headquartered in London, the United Kingdom.
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