Arch Capital Group Ltd (ACGL)vsGilead Sciences Inc (GILD)
ACGL
Arch Capital Group Ltd
$93.32
-0.30%
FINANCIAL SERVICES · Cap: $33.94B
GILD
Gilead Sciences Inc
$138.26
+0.11%
HEALTHCARE · Cap: $171.45B
Smart Verdict
WallStSmart Research — data-driven comparison
Gilead Sciences Inc generates 48% more annual revenue ($29.44B vs $19.93B). GILD leads profitability with a 28.9% profit margin vs 22.1%. GILD appears more attractively valued with a PEG of 0.38. ACGL earns a higher WallStSmart Score of 81/100 (A-).
ACGL
Exceptional Buy81
out of 100
Grade: A-
GILD
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+81.8%
Fair Value
$542.88
Current Price
$93.32
$449.56 discount
Margin of Safety
+53.9%
Fair Value
$299.95
Current Price
$138.26
$161.69 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 22 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 29.5%
Earnings expanding 38.8% YoY
Growing faster than its price suggests
Every $100 of equity generates 41 in profit
Strong operational efficiency at 37.4%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Earnings expanding 23.4% YoY
Areas to Watch
No major concerns identified
4.7% revenue growth
Comparative Analysis Report
WallStSmart ResearchBull Case : ACGL
The strongest argument for ACGL centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 22.1% and operating margin at 29.5%. PEG of 1.06 suggests the stock is reasonably priced for its growth.
Bull Case : GILD
The strongest argument for GILD centers on PEG Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 28.9% and operating margin at 37.4%. PEG of 0.38 suggests the stock is reasonably priced for its growth.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : GILD
The primary concerns for GILD are Revenue Growth.
Key Dynamics to Monitor
ACGL profiles as a mature stock while GILD is a value play — different risk/reward profiles.
GILD carries more volatility with a beta of 0.37 — expect wider price swings.
ACGL is growing revenue faster at 8.5% — sustainability is the question.
GILD generates stronger free cash flow (3.1B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (81/100 vs 72/100), backed by strong 22.1% margins. GILD offers better value entry with a 53.9% margin of safety. Both earn "Exceptional 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.
Gilead Sciences Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Gilead Sciences, Inc. is an American biopharmaceutical company headquartered in Foster City, California, that focuses on researching and developing antiviral drugs used in the treatment of HIV, hepatitis B, hepatitis C, and influenza, including Harvoni and Sovaldi.
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