WallStSmart

Arch Capital Group Ltd. (ACGL)vsGoosehead Insurance Inc (GSHD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 5075% more annual revenue ($19.78B vs $382.20M). ACGL leads profitability with a 24.6% profit margin vs 8.0%. ACGL trades at a lower P/E of 7.3x. 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: 6.5
Piotroski: 5/9

GSHD

Buy

59

out of 100

Grade: C

Growth: 9.3Profit: 7.5Value: 4.7Quality: 6.3
Piotroski: 3/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 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

GSHD4 strengths · Avg: 9.5/10
Return on EquityProfitability
175.8%10/10

Every $100 of equity generates 176 in profit

EPS GrowthGrowth
111.9%10/10

Earnings expanding 111.9% YoY

Debt/EquityHealth
-0.3710/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
23.3%8/10

Revenue surging 23.3% year-over-year

Areas to Watch

ACGL1 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

GSHD4 concerns · Avg: 3.3/10
P/E RatioValuation
37.0x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.50B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
8.0%3/10

8.0% margin — thin

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 : GSHD

The strongest argument for GSHD centers on Return on Equity, EPS Growth, Debt/Equity. Revenue growth of 23.3% demonstrates continued momentum.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth.

Bear Case : GSHD

The primary concerns for GSHD are P/E Ratio, Market Cap, Profit Margin.

Key Dynamics to Monitor

ACGL profiles as a declining stock while GSHD is a growth play — different risk/reward profiles.

GSHD carries more volatility with a beta of 1.62 — expect wider price swings.

GSHD is growing revenue faster at 23.3% — 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 59/100), 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.

Goosehead Insurance Inc

FINANCIAL SERVICES · INSURANCE BROKERS · USA

Goosehead Insurance, Inc. is a portfolio company of Goosehead Financial, LLC providing personal lines insurance agency services in the United States. The company is headquartered in Westlake, Texas.

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