WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 4153% more annual revenue ($19.93B vs $468.60M). ACGL leads profitability with a 22.1% profit margin vs 12.3%. ACGL trades at a lower P/E of 8.4x. ACGL earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

81

out of 100

Grade: A-

Growth: 8.7Profit: 8.0Value: 7.0Quality: 6.5
Piotroski: 5/9

HIPO

Buy

51

out of 100

Grade: C-

Growth: 6.7Profit: 5.5Value: 6.0Quality: 5.8
Piotroski: 4/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.4x10/10

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

HIPO4 strengths · Avg: 8.3/10
Debt/EquityHealth
0.139/10

Conservative balance sheet, low leverage

P/E RatioValuation
12.9x8/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
18.2%8/10

18.2% revenue growth

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

HIPO3 concerns · Avg: 2.3/10
Market CapQuality
$747.88M3/10

Smaller company, higher risk/reward

EPS GrowthGrowth
-86.3%2/10

Earnings declined 86.3%

Free Cash FlowQuality
$-300,0002/10

Negative free cash flow — burning cash

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 : HIPO

The strongest argument for HIPO centers on Debt/Equity, P/E Ratio, Price/Book. Revenue growth of 18.2% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : HIPO

The primary concerns for HIPO are Market Cap, EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

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

HIPO carries more volatility with a beta of 1.61 — expect wider price swings.

HIPO is growing revenue faster at 18.2% — 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 51/100), backed by strong 22.1% margins. Both earn "Exceptional Buy" and "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 a pioneering insurtech firm revolutionizing the home insurance industry through cutting-edge technology and a strong customer-centric approach. Utilizing advanced data analytics and artificial intelligence, Hippo optimizes underwriting processes and customizes insurance offerings to align with the unique needs of homeowners, significantly enhancing the overall customer experience. With a focus on expedited claims processing and comprehensive coverage, Hippo is well-positioned to lead the insurance market, leveraging the increasing demand for efficient and transparent insurance solutions to drive sustainable growth and capture emerging opportunities in the evolving landscape.

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