WallStSmart

Arch Capital Group Ltd. (ACGL)vsHeritage Insurance Hldgs Inc (HRTG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 2231% more annual revenue ($19.78B vs $848.47M). ACGL leads profitability with a 24.6% profit margin vs 23.8%. HRTG trades at a lower P/E of 3.4x. ACGL earns a higher WallStSmart Score of 79/100 (B+).

ACGL

Strong Buy

79

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

HRTG

Strong Buy

70

out of 100

Grade: B

Growth: 6.0Profit: 8.5Value: 6.7Quality: 5.5
Piotroski: 5/9Altman Z: 1.02

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

Profit MarginProfitability
24.6%9/10

Keeps 25 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

HRTG6 strengths · Avg: 9.3/10
P/E RatioValuation
3.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Return on EquityProfitability
38.7%10/10

Every $100 of equity generates 39 in profit

Profit MarginProfitability
23.8%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

Operating MarginProfitability
23.9%8/10

Strong operational efficiency at 23.9%

Areas to Watch

ACGL2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

HRTG3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
0.5%4/10

0.5% revenue growth

Market CapQuality
$670.86M3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
1.022/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull 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 : HRTG

The strongest argument for HRTG centers on P/E Ratio, Price/Book, Return on Equity. Profitability is solid with margins at 23.8% and operating margin at 23.9%.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth, Altman Z-Score.

Bear Case : HRTG

The primary concerns for HRTG are Revenue Growth, Market Cap, Altman Z-Score.

Key Dynamics to Monitor

ACGL profiles as a declining stock while HRTG is a value play — different risk/reward profiles.

HRTG carries more volatility with a beta of 0.92 — expect wider price swings.

HRTG is growing revenue faster at 0.5% — 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 70/100), 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.

Heritage Insurance Hldgs Inc

FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA

Heritage Insurance Holdings, Inc. provides residential personal and commercial insurance products. The company is headquartered in Clearwater, Florida.

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