Arch Capital Group Ltd. (ACGL)vsMorningstar Inc (MORN)
ACGL
Arch Capital Group Ltd.
$88.34
+0.58%
FINANCIAL SERVICES · Cap: $32.03B
MORN
Morningstar Inc
$185.76
+1.01%
FINANCIAL SERVICES · Cap: $6.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 688% more annual revenue ($19.78B vs $2.51B). ACGL leads profitability with a 24.6% profit margin vs 16.1%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 79/100 (B+).
ACGL
Strong Buy79
out of 100
Grade: B+
MORN
Strong Buy67
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
Earnings expanding 94.6% YoY
Every $100 of equity generates 20 in profit
Keeps 25 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Every $100 of equity generates 40 in profit
Earnings expanding 50.0% YoY
Attractively priced relative to earnings
Strong operational efficiency at 24.2%
Areas to Watch
Revenue declined 3.3%
Distress zone — elevated risk
Expensive relative to growth rate
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull 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 : MORN
The strongest argument for MORN centers on Return on Equity, EPS Growth, P/E Ratio. Profitability is solid with margins at 16.1% and operating margin at 24.2%. Revenue growth of 10.8% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, Altman Z-Score.
Bear Case : MORN
The primary concerns for MORN are PEG Ratio, Debt/Equity. Debt-to-equity of 1.87 is elevated, increasing financial risk.
Key Dynamics to Monitor
ACGL profiles as a declining stock while MORN is a mature play — different risk/reward profiles.
MORN carries more volatility with a beta of 0.99 — expect wider price swings.
MORN is growing revenue faster at 10.8% — sustainability is the question.
ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (79/100 vs 67/100), backed by strong 24.6% margins. 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.
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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