Arch Capital Group Ltd (ACGL)vsHCA Holdings Inc (HCA)
ACGL
Arch Capital Group Ltd
$93.32
-0.30%
FINANCIAL SERVICES · Cap: $33.94B
HCA
HCA Holdings Inc
$484.02
-0.35%
HEALTHCARE · Cap: $108.62B
Smart Verdict
WallStSmart Research — data-driven comparison
HCA Holdings Inc generates 279% more annual revenue ($75.60B vs $19.93B). ACGL leads profitability with a 22.1% profit margin vs 9.0%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 81/100 (A-).
ACGL
Exceptional Buy81
out of 100
Grade: A-
HCA
Strong Buy69
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
+59.9%
Fair Value
$1326.31
Current Price
$484.02
$842.29 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
Every $100 of equity generates 136 in profit
Conservative balance sheet, low leverage
Large-cap with strong market position
Attractively priced relative to earnings
Earnings expanding 44.5% YoY
Areas to Watch
No major concerns identified
Distress zone — elevated risk
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 : HCA
The strongest argument for HCA centers on Return on Equity, Debt/Equity, Market Cap. PEG of 1.35 suggests the stock is reasonably priced for its growth.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : HCA
The primary concerns for HCA are Altman Z-Score.
Key Dynamics to Monitor
ACGL profiles as a mature stock while HCA is a value play — different risk/reward profiles.
HCA carries more volatility with a beta of 1.34 — expect wider price swings.
ACGL is growing revenue faster at 8.5% — sustainability is the question.
ACGL generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (81/100 vs 69/100), backed by strong 22.1% margins. HCA offers better value entry with a 59.9% 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.
HCA Holdings Inc
HEALTHCARE · MEDICAL CARE FACILITIES · USA
HCA Healthcare is an American for-profit operator of health care facilities that was founded in 1968. It is based in Nashville, Tennessee, and, as of May 2020, owns and operates 186 hospitals and approximately 2,000 sites of care, including surgery centers, freestanding emergency rooms, urgent care centers and physician clinics in 21 states and the United Kingdom.
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