Arch Capital Group Ltd. (ACGL)vsMorgan Stanley (MS)
ACGL
Arch Capital Group Ltd.
$96.09
-0.11%
FINANCIAL SERVICES · Cap: $33.47B
MS
Morgan Stanley
$214.38
+0.81%
FINANCIAL SERVICES · Cap: $336.70B
Smart Verdict
WallStSmart Research — data-driven comparison
Morgan Stanley generates 305% more annual revenue ($77.83B vs $19.23B). MS leads profitability with a 25.9% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. MS earns a higher WallStSmart Score of 75/100 (B).
ACGL
Strong Buy67
out of 100
Grade: B-
MS
Strong Buy75
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
Mega-cap, among the largest globally
Strong operational efficiency at 41.6%
Earnings expanding 62.4% YoY
Keeps 26 of every $100 in revenue as profit
Attractively priced relative to earnings
Revenue surging 28.0% year-over-year
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
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 : MS
The strongest argument for MS centers on Market Cap, Operating Margin, EPS Growth. Profitability is solid with margins at 25.9% and operating margin at 41.6%. Revenue growth of 28.0% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : MS
The primary concerns for MS are PEG Ratio, Free Cash Flow, Altman Z-Score. Debt-to-equity of 4.75 is elevated, increasing financial risk.
Key Dynamics to Monitor
ACGL profiles as a declining stock while MS is a growth play — different risk/reward profiles.
MS carries more volatility with a beta of 1.21 — expect wider price swings.
MS is growing revenue faster at 28.0% — sustainability is the question.
ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
MS scores higher overall (75/100 vs 67/100), backed by strong 25.9% margins and 28.0% 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.
Morgan Stanley
FINANCIAL SERVICES · CAPITAL MARKETS · USA
Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in the Morgan Stanley Building, Midtown Manhattan, New York City.
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