WallStSmart

Arch Capital Group Ltd. (ACGL)vsGlaxoSmithKline PLC ADR (GSK)

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Smart Verdict

WallStSmart Research — data-driven comparison

GlaxoSmithKline PLC ADR generates 66% more annual revenue ($32.78B vs $19.78B). ACGL leads profitability with a 24.6% profit margin vs 17.8%. GSK appears more attractively valued with a PEG of 0.50. 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

GSK

Strong Buy

66

out of 100

Grade: B-

Growth: 4.7Profit: 9.0Value: 7.3Quality: 4.0
Piotroski: 5/9Altman Z: 1.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ACGL.

GSKFair Value (-3.1%)

Margin of Safety

-3.1%

Fair Value

$56.71

Current Price

$50.41

$6.30 premium

UndervaluedFair: $56.71Overvalued

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

GSK5 strengths · Avg: 9.4/10
PEG RatioValuation
0.5010/10

Growing faster than its price suggests

Return on EquityProfitability
40.9%10/10

Every $100 of equity generates 41 in profit

Operating MarginProfitability
36.3%10/10

Strong operational efficiency at 36.3%

Market CapQuality
$101.38B9/10

Large-cap with strong market position

P/E RatioValuation
13.1x8/10

Attractively priced relative to earnings

Areas to Watch

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

Revenue declined 3.3%

GSK3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.5%4/10

1.5% revenue growth

Debt/EquityHealth
1.103/10

Elevated debt levels

Altman Z-ScoreHealth
1.262/10

Distress zone — elevated risk

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 : GSK

The strongest argument for GSK centers on PEG Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 17.8% and operating margin at 36.3%. PEG of 0.50 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth.

Bear Case : GSK

The primary concerns for GSK are Revenue Growth, Debt/Equity, Altman Z-Score.

Key Dynamics to Monitor

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

ACGL carries more volatility with a beta of 0.33 — expect wider price swings.

GSK is growing revenue faster at 1.5% — 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 66/100), 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.

GlaxoSmithKline PLC ADR

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

GlaxoSmithKline plc is dedicated to the creation, discovery, development, manufacture and marketing of pharmaceuticals, vaccines, over-the-counter drugs and health-related consumer products in the UK, US and internationally. The company is headquartered in Brentford, the United Kingdom.

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