WallStSmart

Arch Capital Group Ltd (ACGL)vsIntercontinental Exchange Inc (ICE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 101% more annual revenue ($19.93B vs $9.93B). ICE leads profitability with a 33.4% profit margin vs 22.1%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

81

out of 100

Grade: A-

Growth: 8.7Profit: 8.0Value: 10.0Quality: 6.5
Piotroski: 5/9

ICE

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 7.5Value: 10.0Quality: 6.0
Piotroski: 6/9Altman Z: 0.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ACGLUndervalued (+81.8%)

Margin of Safety

+81.8%

Fair Value

$542.88

Current Price

$93.32

$449.56 discount

UndervaluedFair: $542.88Overvalued
ICEUndervalued (+38.6%)

Margin of Safety

+38.6%

Fair Value

$255.26

Current Price

$156.83

$98.43 discount

UndervaluedFair: $255.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.1x10/10

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

ICE5 strengths · Avg: 9.0/10
Profit MarginProfitability
33.4%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
49.6%10/10

Strong operational efficiency at 49.6%

Market CapQuality
$88.85B9/10

Large-cap with strong market position

EPS GrowthGrowth
23.4%8/10

Earnings expanding 23.4% YoY

Free Cash FlowQuality
$1.11B8/10

Generating 1.1B in free cash flow

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

ICE3 concerns · Avg: 3.3/10
PEG RatioValuation
2.204/10

Expensive relative to growth rate

P/E RatioValuation
27.0x4/10

Moderate valuation

Altman Z-ScoreHealth
0.602/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, 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 : ICE

The strongest argument for ICE centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 33.4% and operating margin at 49.6%.

Bear Case : ACGL

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

Bear Case : ICE

The primary concerns for ICE are PEG Ratio, P/E Ratio, Altman Z-Score.

Key Dynamics to Monitor

ICE carries more volatility with a beta of 1.05 — 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.

Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ACGL scores higher overall (81/100 vs 63/100), backed by strong 22.1% margins. ICE offers better value entry with a 38.6% margin of safety. 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.

Intercontinental Exchange Inc

FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA

The Intercontinental Exchange (ICE) is an American Fortune 500 company formed in 2000 that operates global exchanges, clearing houses and provides mortgage technology, data and listing services. The company owns exchanges for financial and commodity markets, and operates regulated exchanges and marketplaces.

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