WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 2252% more annual revenue ($19.93B vs $847.33M). HRTG leads profitability with a 23.1% profit margin vs 22.1%. HRTG trades at a lower P/E of 4.7x. 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

HRTG

Strong Buy

72

out of 100

Grade: B

Growth: 6.7Profit: 8.5Value: 6.7Quality: 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

HRTG6 strengths · Avg: 9.5/10
P/E RatioValuation
4.7x10/10

Attractively priced relative to earnings

Return on EquityProfitability
49.1%10/10

Every $100 of equity generates 49 in profit

Operating MarginProfitability
41.6%10/10

Strong operational efficiency at 41.6%

EPS GrowthGrowth
226.0%10/10

Earnings expanding 226.0% YoY

Profit MarginProfitability
23.1%9/10

Keeps 23 of every $100 in revenue as profit

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

HRTG2 concerns · Avg: 3.5/10
Revenue GrowthGrowth
2.4%4/10

2.4% revenue growth

Market CapQuality
$918.55M3/10

Smaller company, higher risk/reward

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 : HRTG

The strongest argument for HRTG centers on P/E Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 23.1% and operating margin at 41.6%.

Bear Case : ACGL

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

Bear Case : HRTG

The primary concerns for HRTG are Revenue Growth, Market Cap.

Key Dynamics to Monitor

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

HRTG carries more volatility with a beta of 0.95 — 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 72/100), backed by strong 22.1% margins. Both earn "Exceptional 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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