Arch Capital Group Ltd. (ACGL)vsLemonade Inc (LMND)
ACGL
Arch Capital Group Ltd.
$98.48
-0.82%
FINANCIAL SERVICES · Cap: $34.28B
LMND
Lemonade Inc
$52.94
+2.08%
FINANCIAL SERVICES · Cap: $3.74B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 1873% more annual revenue ($19.23B vs $975.00M). ACGL leads profitability with a 24.4% profit margin vs -14.2%. ACGL earns a higher WallStSmart Score of 67/100 (B-).
ACGL
Strong Buy67
out of 100
Grade: B-
LMND
Avoid33
out of 100
Grade: F
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Every $100 of equity generates 20 in profit
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 26.6%
Revenue surging 79.4% year-over-year
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
0.0% earnings growth
ROE of -26.8% — below average capital efficiency
Negative free cash flow — burning cash
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ACGL
The strongest argument for ACGL centers on P/E Ratio, Price/Book, Return on Equity. Profitability is solid with margins at 24.4% and operating margin at 26.6%. PEG of 1.06 suggests the stock is reasonably priced for its growth.
Bull Case : LMND
The strongest argument for LMND centers on Revenue Growth. Revenue growth of 79.4% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : LMND
The primary concerns for LMND are EPS Growth, Return on Equity, Free Cash Flow.
Key Dynamics to Monitor
ACGL profiles as a declining stock while LMND is a hypergrowth play — different risk/reward profiles.
LMND carries more volatility with a beta of 1.78 — expect wider price swings.
LMND is growing revenue faster at 79.4% — sustainability is the question.
ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (67/100 vs 33/100), backed by strong 24.4% margins. Both earn "Strong Buy" and "Avoid" 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.
Lemonade Inc
FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA
Lemonade, Inc. offers various insurance products in the United States and Europe. The company is headquartered in New York, New York.
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