Arch Capital Group Ltd. (ACGL)vsMercury General Corporation (MCY)
ACGL
Arch Capital Group Ltd.
$96.09
-0.11%
FINANCIAL SERVICES · Cap: $33.47B
MCY
Mercury General Corporation
$102.34
-0.26%
FINANCIAL SERVICES · Cap: $5.79B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 203% more annual revenue ($19.23B vs $6.34B). ACGL leads profitability with a 24.4% profit margin vs 14.8%. ACGL appears more attractively valued with a PEG of 1.06. MCY earns a higher WallStSmart Score of 76/100 (B+).
ACGL
Strong Buy67
out of 100
Grade: B-
MCY
Strong Buy76
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 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 26.6%
Generating 1.3B in free cash flow
Attractively priced relative to earnings
Every $100 of equity generates 32 in profit
Earnings expanding 58.3% YoY
Reasonable price relative to book value
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Weak financial health signals
Distress zone — elevated risk
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 24.4% and operating margin at 26.6%. 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, Return on Equity, EPS Growth. Revenue growth of 13.8% demonstrates continued momentum. PEG of 1.12 suggests the stock is reasonably priced for its growth.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : MCY
The primary concerns for MCY are Piotroski F-Score, Altman Z-Score.
Key Dynamics to Monitor
ACGL profiles as a declining stock while MCY is a value play — different risk/reward profiles.
MCY carries more volatility with a beta of 0.92 — expect wider price swings.
MCY is growing revenue faster at 13.8% — sustainability is the question.
ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
MCY scores higher overall (76/100 vs 67/100) and 13.8% revenue growth. Both earn "Strong 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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