WallStSmart

Arch Capital Group Ltd. (ACGL)vsHCI Group Inc (HCI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 2033% more annual revenue ($19.78B vs $927.39M). HCI leads profitability with a 32.6% profit margin vs 24.6%. HCI appears more attractively valued with a PEG of 0.97. 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

HCI

Strong Buy

77

out of 100

Grade: B+

Growth: 6.7Profit: 9.5Value: 7.7Quality: 5.0

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.2x10/10

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

HCI6 strengths · Avg: 9.3/10
P/E RatioValuation
6.5x10/10

Attractively priced relative to earnings

Return on EquityProfitability
38.5%10/10

Every $100 of equity generates 39 in profit

Profit MarginProfitability
32.6%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
47.9%10/10

Strong operational efficiency at 47.9%

PEG RatioValuation
0.978/10

Growing faster than its price suggests

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

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

Revenue declined 3.3%

HCI2 concerns · Avg: 3.5/10
EPS GrowthGrowth
1.7%4/10

1.7% earnings growth

Market CapQuality
$1.90B3/10

Smaller company, higher risk/reward

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 : HCI

The strongest argument for HCI centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 32.6% and operating margin at 47.9%. Revenue growth of 12.2% demonstrates continued momentum.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth.

Bear Case : HCI

The primary concerns for HCI are EPS Growth, Market Cap.

Key Dynamics to Monitor

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

HCI carries more volatility with a beta of 1.09 — expect wider price swings.

HCI is growing revenue faster at 12.2% — 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 77/100), 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.

HCI Group Inc

FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA

HCI Group, Inc. is engaged in the property and casualty insurance, reinsurance, real estate and information technology businesses in Florida. The company is headquartered in Tampa, Florida.

Want to dig deeper into these stocks?