WallStSmart

Arch Capital Group Ltd. (ACGL)vsHippo Holdings Inc (HIPO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 3693% more annual revenue ($19.23B vs $507.10M). ACGL leads profitability with a 24.4% profit margin vs 23.9%. HIPO trades at a lower P/E of 6.9x. HIPO earns a higher WallStSmart Score of 68/100 (B-).

ACGL

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 8.0Value: 7.0Quality: 6.8
Piotroski: 6/9Altman Z: 1.48

HIPO

Strong Buy

68

out of 100

Grade: B-

Growth: 9.3Profit: 7.0Value: 6.7Quality: 5.5
Piotroski: 4/9Altman Z: -0.23

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
7.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

Free Cash FlowQuality
$2.49B8/10

Generating 2.5B in free cash flow

HIPO6 strengths · Avg: 9.2/10
P/E RatioValuation
6.9x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
660.0%10/10

Earnings expanding 660.0% YoY

Return on EquityProfitability
25.1%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
23.9%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Areas to Watch

ACGL3 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-10.5%2/10

Revenue declined 10.5%

EPS GrowthGrowth
-7.1%2/10

Earnings declined 7.1%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

HIPO2 concerns · Avg: 2.5/10
Market CapQuality
$860.82M3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
-0.232/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 24.4% and operating margin at 26.6%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : HIPO

The strongest argument for HIPO centers on P/E Ratio, EPS Growth, Return on Equity. Profitability is solid with margins at 23.9% and operating margin at 8.0%. Revenue growth of 23.4% demonstrates continued momentum.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.

Bear Case : HIPO

The primary concerns for HIPO are Market Cap, Altman Z-Score.

Key Dynamics to Monitor

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

HIPO carries more volatility with a beta of 1.55 — expect wider price swings.

HIPO is growing revenue faster at 23.4% — sustainability is the question.

ACGL generates stronger free cash flow (2.5B), providing more financial flexibility.

Bottom Line

HIPO scores higher overall (68/100 vs 67/100), backed by strong 23.9% margins and 23.4% revenue growth. 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.

Hippo Holdings Inc

FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA

Hippo Holdings Inc. (HIPO) is an innovative insurtech company transforming the home insurance landscape through advanced technology and a strong customer-centric model. Utilizing artificial intelligence and data analytics, Hippo enhances underwriting processes and tailors insurance offerings to meet the distinct needs of homeowners. The company prioritizes expedited claims processing and broad coverage options, positioning itself to gain a competitive edge in a market that increasingly values transparency and efficiency. As the home insurance industry continues to evolve, Hippo's commitment to modernizing traditional practices underscores its potential for substantial growth and market leadership.

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