Arch Capital Group Ltd. (ACGL)vsHoulihan Lokey Inc (HLI)
ACGL
Arch Capital Group Ltd.
$93.80
-0.76%
FINANCIAL SERVICES · Cap: $33.09B
HLI
Houlihan Lokey Inc
$152.87
-0.41%
FINANCIAL SERVICES · Cap: $10.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 647% more annual revenue ($19.78B vs $2.65B). ACGL leads profitability with a 24.6% profit margin vs 16.9%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 79/100 (B+).
ACGL
Strong Buy79
out of 100
Grade: B+
HLI
Strong Buy68
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 94.6% YoY
Every $100 of equity generates 21 in profit
Keeps 25 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Every $100 of equity generates 21 in profit
Strong operational efficiency at 24.9%
Earnings expanding 22.3% YoY
Areas to Watch
Revenue declined 3.3%
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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 : HLI
The strongest argument for HLI centers on Return on Equity, Operating Margin, EPS Growth. Profitability is solid with margins at 16.9% and operating margin at 24.9%. Revenue growth of 13.0% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth.
Bear Case : HLI
The primary concerns for HLI are PEG Ratio.
Key Dynamics to Monitor
ACGL profiles as a declining stock while HLI is a mature play — different risk/reward profiles.
HLI carries more volatility with a beta of 1.00 — expect wider price swings.
HLI is growing revenue faster at 13.0% — 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 68/100), 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.
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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