Arch Capital Group Ltd. (ACGL)vsHoulihan Lokey Inc (HLI)
ACGL
Arch Capital Group Ltd.
$92.04
+1.29%
FINANCIAL SERVICES · Cap: $32.03B
HLI
Houlihan Lokey Inc
$139.25
-1.38%
FINANCIAL SERVICES · Cap: $9.52B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 656% more annual revenue ($19.78B vs $2.62B). ACGL leads profitability with a 24.6% profit margin vs 16.3%. 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
Buy50
out of 100
Grade: C-
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 20 in profit
Keeps 25 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Conservative balance sheet, low leverage
Strong operational efficiency at 22.5%
Areas to Watch
Revenue declined 3.3%
Distress zone — elevated risk
Expensive relative to growth rate
Revenue declined 4.6%
Earnings declined 16.6%
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 Debt/Equity, Operating Margin. Profitability is solid with margins at 16.3% and operating margin at 22.5%.
Bear Case : ACGL
The primary concerns for ACGL are Revenue 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 0.95 — expect wider price swings.
ACGL is growing revenue faster at -3.3% — 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 (79/100 vs 50/100), backed by strong 24.6% margins. Both earn "Strong 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.
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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