WallStSmart

Arch Capital Group Ltd (ACGL)vsHartford Financial Services Group (HIG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Hartford Financial Services Group generates 42% more annual revenue ($28.38B vs $19.93B). ACGL leads profitability with a 22.1% profit margin vs 13.5%. HIG appears more attractively valued with a PEG of 0.12. HIG earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

81

out of 100

Grade: A-

Growth: 8.7Profit: 8.0Value: 10.0Quality: 6.5
Piotroski: 5/9

HIG

Exceptional Buy

81

out of 100

Grade: A-

Growth: 7.3Profit: 7.0Value: 10.0Quality: 8.3
Piotroski: 6/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ACGLUndervalued (+81.8%)

Margin of Safety

+81.8%

Fair Value

$542.88

Current Price

$92.30

$450.58 discount

UndervaluedFair: $542.88Overvalued
HIGUndervalued (+77.4%)

Margin of Safety

+77.4%

Fair Value

$629.46

Current Price

$132.65

$496.81 discount

UndervaluedFair: $629.46Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

EPS GrowthGrowth
38.8%8/10

Earnings expanding 38.8% YoY

HIG6 strengths · Avg: 9.0/10
PEG RatioValuation
0.1210/10

Growing faster than its price suggests

P/E RatioValuation
9.9x10/10

Attractively priced relative to earnings

Return on EquityProfitability
21.7%9/10

Every $100 of equity generates 22 in profit

Debt/EquityHealth
0.239/10

Conservative balance sheet, low leverage

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
20.0%8/10

Strong operational efficiency at 20.0%

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

HIG0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull 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 : HIG

The strongest argument for HIG centers on PEG Ratio, P/E Ratio, Return on Equity. PEG of 0.12 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

No major red flags identified for ACGL, but monitor valuation.

Bear Case : HIG

No major red flags identified for HIG, but monitor valuation.

Key Dynamics to Monitor

ACGL profiles as a mature stock while HIG is a value play — different risk/reward profiles.

HIG carries more volatility with a beta of 0.52 — expect wider price swings.

ACGL is growing revenue faster at 8.5% — sustainability is the question.

HIG generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (81/100 vs 81/100), backed by strong 22.1% margins. HIG offers better value entry with a 77.4% margin of safety. Both earn "Exceptional Buy" and "Exceptional 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.

Hartford Financial Services Group

FINANCIAL SERVICES · INSURANCE - DIVERSIFIED · USA

The Hartford Financial Services Group, Inc., usually known as The Hartford, is a United States-based investment and insurance company.

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