WallStSmart

Arch Capital Group Ltd (ACGL)vsMorningstar Inc (MORN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 715% more annual revenue ($19.93B vs $2.45B). ACGL leads profitability with a 22.1% profit margin vs 15.3%. 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: 7.0Quality: 6.5
Piotroski: 5/9

MORN

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 8.5Value: 5.0Quality: 5.8
Piotroski: 5/9Altman Z: 2.46

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.4x10/10

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

MORN2 strengths · Avg: 8.5/10
Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Operating MarginProfitability
21.7%8/10

Strong operational efficiency at 21.7%

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

MORN2 concerns · Avg: 4.0/10
PEG RatioValuation
2.314/10

Expensive relative to growth rate

EPS GrowthGrowth
4.5%4/10

4.5% earnings growth

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 : MORN

The strongest argument for MORN centers on Return on Equity, Operating Margin. Profitability is solid with margins at 15.3% and operating margin at 21.7%.

Bear Case : ACGL

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

Bear Case : MORN

The primary concerns for MORN are PEG Ratio, EPS Growth.

Key Dynamics to Monitor

MORN carries more volatility with a beta of 1.11 — expect wider price swings.

MORN 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 57/100), backed by strong 22.1% margins. 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.

Morningstar Inc

FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA

Morningstar, Inc. offers independent investment research services in North America, Europe, Australia, and Asia. The company is headquartered in Chicago, Illinois.

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