WallStSmart

Arch Capital Group Ltd (ACGL)vsHennessy Ad (HNNA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 58257% more annual revenue ($19.93B vs $34.15M). HNNA leads profitability with a 26.5% profit margin vs 22.1%. HNNA appears more attractively valued with a PEG of 0.71. 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

HNNA

Buy

58

out of 100

Grade: C

Growth: 3.3Profit: 8.0Value: 7.7Quality: 5.0

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

HNNA5 strengths · Avg: 9.4/10
P/E RatioValuation
8.5x10/10

Attractively priced relative to earnings

Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Operating MarginProfitability
31.3%10/10

Strong operational efficiency at 31.3%

Profit MarginProfitability
26.5%9/10

Keeps 27 of every $100 in revenue as profit

PEG RatioValuation
0.718/10

Growing faster than its price suggests

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

HNNA3 concerns · Avg: 2.3/10
Market CapQuality
$77.03M3/10

Smaller company, higher risk/reward

Revenue GrowthGrowth
-14.3%2/10

Revenue declined 14.3%

EPS GrowthGrowth
-33.3%2/10

Earnings declined 33.3%

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 : HNNA

The strongest argument for HNNA centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 26.5% and operating margin at 31.3%. PEG of 0.71 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

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

Bear Case : HNNA

The primary concerns for HNNA are Market Cap, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

ACGL profiles as a mature stock while HNNA is a declining play — different risk/reward profiles.

HNNA carries more volatility with a beta of 0.63 — expect wider price swings.

ACGL is growing revenue faster at 8.5% — 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 58/100), 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.

Hennessy Ad

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Hennessy Advisors, Inc. is a publicly owned investment manager. The company is headquartered in Novato, California with additional offices in Boston, Massachusetts and Chapel Hill, North Carolina.

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