Arch Capital Group Ltd (ACGL)vsMercury General Corporation (MCY)
ACGL
Arch Capital Group Ltd
$94.46
+1.88%
FINANCIAL SERVICES · Cap: $34.58B
MCY
Mercury General Corporation
$95.65
-2.63%
FINANCIAL SERVICES · Cap: $5.30B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd generates 233% more annual revenue ($19.93B vs $5.99B). ACGL leads profitability with a 22.1% profit margin vs 9.0%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 81/100 (A-).
ACGL
Exceptional Buy81
out of 100
Grade: A-
MCY
Strong Buy73
out of 100
Grade: B
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 22 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 29.5%
Earnings expanding 38.8% YoY
Attractively priced relative to earnings
Earnings expanding 100.9% YoY
Every $100 of equity generates 25 in profit
Reasonable price relative to book value
Areas to Watch
No major concerns identified
Distress zone — elevated risk
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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 : MCY
The strongest argument for MCY centers on P/E Ratio, EPS Growth, Return on Equity. Revenue growth of 14.1% demonstrates continued momentum. PEG of 1.12 suggests the stock is reasonably priced for its growth.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : MCY
The primary concerns for MCY are Altman Z-Score, Piotroski F-Score.
Key Dynamics to Monitor
ACGL profiles as a mature stock while MCY is a value play — different risk/reward profiles.
MCY carries more volatility with a beta of 0.93 — expect wider price swings.
MCY is growing revenue faster at 14.1% — 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 73/100), 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.
Mercury General Corporation
FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA
Mercury General Corporation engages in underwriting personal auto insurance in the United States. The company is headquartered in Los Angeles, California.
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