WallStSmart

Arch Capital Group Ltd. (ACGL)vsErie Indemnity Company (ERIE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 367% more annual revenue ($19.23B vs $4.12B). ACGL leads profitability with a 24.4% profit margin vs 14.0%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 67/100 (B-).

ACGL

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

ERIE

Buy

50

out of 100

Grade: C-

Growth: 5.3Profit: 7.5Value: 4.3Quality: 7.0
Piotroski: 2/9Altman Z: 4.71

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
7.7x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

Free Cash FlowQuality
$1.31B8/10

Generating 1.3B in free cash flow

ERIE3 strengths · Avg: 9.7/10
Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7110/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
23.4%9/10

Every $100 of equity generates 23 in profit

Areas to Watch

ACGL3 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-10.5%2/10

Revenue declined 10.5%

EPS GrowthGrowth
-7.1%2/10

Earnings declined 7.1%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

ERIE4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.8%4/10

2.8% revenue growth

EPS GrowthGrowth
3.2%4/10

3.2% earnings growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.672/10

Expensive relative to growth rate

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 24.4% and operating margin at 26.6%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : ERIE

The strongest argument for ERIE centers on Debt/Equity, Altman Z-Score, Return on Equity.

Bear Case : ACGL

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

Bear Case : ERIE

The primary concerns for ERIE are Revenue Growth, EPS Growth, Piotroski F-Score.

Key Dynamics to Monitor

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

ERIE carries more volatility with a beta of 0.30 — expect wider price swings.

ERIE is growing revenue faster at 2.8% — sustainability is the question.

ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (67/100 vs 50/100), backed by strong 24.4% 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.

Erie Indemnity Company

FINANCIAL SERVICES · INSURANCE BROKERS · USA

Erie Indemnity Company is an administrative agent for underwriters on the Erie Insurance Exchange in the United States. The company is headquartered in Erie, Pennsylvania.

Want to dig deeper into these stocks?