WallStSmart

Arch Capital Group Ltd. (ACGL)vsCitizens Inc (CIA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 7516% more annual revenue ($19.78B vs $259.68M). ACGL leads profitability with a 24.6% profit margin vs 7.1%. 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

CIA

Buy

55

out of 100

Grade: C

Growth: 6.7Profit: 4.0Value: 6.3Quality: 4.0
Piotroski: 2/9Altman Z: 0.36

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

CIA3 strengths · Avg: 9.3/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

EPS GrowthGrowth
99.5%10/10

Earnings expanding 99.5% YoY

P/E RatioValuation
14.8x8/10

Attractively priced relative to earnings

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

CIA4 concerns · Avg: 3.0/10
Market CapQuality
$261.87M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.7%3/10

ROE of 7.7% — below average capital efficiency

Profit MarginProfitability
7.1%3/10

7.1% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

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 : CIA

The strongest argument for CIA centers on Price/Book, EPS Growth, P/E Ratio. PEG of 1.21 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

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

Bear Case : CIA

The primary concerns for CIA are Market Cap, Return on Equity, Profit Margin.

Key Dynamics to Monitor

ACGL profiles as a declining stock while CIA is a value play — different risk/reward profiles.

CIA carries more volatility with a beta of 0.47 — expect wider price swings.

CIA is growing revenue faster at 7.3% — 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 55/100), backed by strong 24.6% margins. 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.

Citizens Inc

FINANCIAL SERVICES · INSURANCE - LIFE · USA

Citizens, Inc., offers life insurance products in the United States and internationally. The company is headquartered in Austin, Texas.

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