WallStSmart

Arch Capital Group Ltd. (ACGL)vsKestrel Group, Ltd. (KG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 45468% more annual revenue ($19.78B vs $43.40M). KG leads profitability with a 91.4% profit margin vs 24.6%. KG trades at a lower P/E of 2.2x. 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

KG

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 6.0Value: 6.7Quality: 4.5
Piotroski: 3/9

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

KG5 strengths · Avg: 10.0/10
P/E RatioValuation
2.2x10/10

Attractively priced relative to earnings

Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Return on EquityProfitability
32.7%10/10

Every $100 of equity generates 33 in profit

Profit MarginProfitability
91.4%10/10

Keeps 91 of every $100 in revenue as profit

Revenue GrowthGrowth
1112.0%10/10

Revenue surging 1112.0% year-over-year

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

KG4 concerns · Avg: 3.3/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$93.34M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.463/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : KG

The strongest argument for KG centers on P/E Ratio, Price/Book, Return on Equity. Profitability is solid with margins at 91.4% and operating margin at -44.9%. Revenue growth of 1112.0% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : KG

The primary concerns for KG are EPS Growth, Market Cap, Debt/Equity.

Key Dynamics to Monitor

ACGL profiles as a declining stock while KG is a growth play — different risk/reward profiles.

KG is growing revenue faster at 1112.0% — 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 62/100), 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.

Kestrel Group, Ltd.

FINANCIAL SERVICES · INSURANCE - REINSURANCE · USA

Kestrel Group Ltd engages in providing fronting services to insurance program managers, MGAs, reinsurers, and reinsurance brokers. The company is headquartered in Hamilton, Bermuda.

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