Arch Capital Group Ltd. (ACGL)vsHoulihan Lokey Inc (HLI)
ACGL
Arch Capital Group Ltd.
$98.48
-0.82%
FINANCIAL SERVICES · Cap: $34.28B
HLI
Houlihan Lokey Inc
$129.00
+1.11%
FINANCIAL SERVICES · Cap: $8.77B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 662% more annual revenue ($19.23B vs $2.52B). ACGL leads profitability with a 24.4% profit margin vs 16.1%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 67/100 (B-).
ACGL
Strong Buy67
out of 100
Grade: B-
HLI
Hold48
out of 100
Grade: D+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Every $100 of equity generates 20 in profit
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 26.6%
Conservative balance sheet, low leverage
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Expensive relative to growth rate
Revenue declined 15.6%
Earnings declined 19.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : ACGL
The strongest argument for ACGL centers on P/E Ratio, Price/Book, Return on Equity. 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 : HLI
The strongest argument for HLI centers on Debt/Equity. Profitability is solid with margins at 16.1% and operating margin at 18.0%.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : HLI
The primary concerns for HLI are PEG Ratio, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
HLI carries more volatility with a beta of 0.96 — expect wider price swings.
ACGL is growing revenue faster at -10.5% — sustainability is the question.
ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.
Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ACGL scores higher overall (67/100 vs 48/100), backed by strong 24.4% margins. Both earn "Strong Buy" and "Hold" 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.
Houlihan Lokey Inc
FINANCIAL SERVICES · CAPITAL MARKETS · USA
Houlihan Lokey, Inc., an investment banking firm, provides valuation and financial advisory services, capital markets, mergers and acquisitions (M&A) globally. The company is headquartered in Los Angeles, California.
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