WallStSmart

Arch Capital Group Ltd. (ACGL)vsEssent Group Ltd (ESNT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 1446% more annual revenue ($19.78B vs $1.28B). ESNT leads profitability with a 53.6% profit margin vs 24.6%. ESNT appears more attractively valued with a PEG of 0.84. 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

ESNT

Strong Buy

73

out of 100

Grade: B

Growth: 6.0Profit: 8.0Value: 7.7Quality: 8.5
Piotroski: 3/9Altman Z: 4.50

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

ESNT6 strengths · Avg: 10.0/10
P/E RatioValuation
8.3x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
53.6%10/10

Keeps 54 of every $100 in revenue as profit

Operating MarginProfitability
63.7%10/10

Strong operational efficiency at 63.7%

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.5010/10

Safe zone — low bankruptcy risk

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

ESNT1 concerns · Avg: 3.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : ESNT

The strongest argument for ESNT centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 53.6% and operating margin at 63.7%. PEG of 0.84 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 : ESNT

The primary concerns for ESNT are Piotroski F-Score.

Key Dynamics to Monitor

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

ESNT carries more volatility with a beta of 0.78 — expect wider price swings.

ESNT is growing revenue faster at 5.8% — 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 73/100), 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.

Essent Group Ltd

FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA

Essent Group Ltd., provides private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. The company is headquartered in Hamilton, Bermuda.

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