WallStSmart

Arch Capital Group Ltd. (ACGL)vsMGIC Investment Corp (MTG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 1509% more annual revenue ($19.23B vs $1.20B). MTG leads profitability with a 59.2% profit margin vs 24.4%. MTG appears more attractively valued with a PEG of 0.40. MTG earns a higher WallStSmart Score of 67/100 (B-).

ACGL

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

MTG

Strong Buy

67

out of 100

Grade: B-

Growth: 4.0Profit: 8.5Value: 8.3Quality: 7.3
Piotroski: 2/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
7.7x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

Free Cash FlowQuality
$1.31B8/10

Generating 1.3B in free cash flow

MTG6 strengths · Avg: 9.8/10
PEG RatioValuation
0.4010/10

Growing faster than its price suggests

P/E RatioValuation
9.6x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Profit MarginProfitability
59.2%10/10

Keeps 59 of every $100 in revenue as profit

Operating MarginProfitability
80.8%10/10

Strong operational efficiency at 80.8%

Debt/EquityHealth
0.139/10

Conservative balance sheet, low leverage

Areas to Watch

ACGL3 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-10.5%2/10

Revenue declined 10.5%

EPS GrowthGrowth
-7.1%2/10

Earnings declined 7.1%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

MTG2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Revenue GrowthGrowth
-2.9%2/10

Revenue declined 2.9%

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 24.4% and operating margin at 26.6%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : MTG

The strongest argument for MTG centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 59.2% and operating margin at 80.8%. PEG of 0.40 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 : MTG

The primary concerns for MTG are Piotroski F-Score, Revenue Growth.

Key Dynamics to Monitor

MTG carries more volatility with a beta of 0.65 — expect wider price swings.

MTG is growing revenue faster at -2.9% — sustainability is the question.

ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.

Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ACGL scores higher overall (67/100 vs 67/100), backed by strong 24.4% 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.

MGIC Investment Corp

FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA

MGIC Investment Corporation offers private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government-sponsored entities in the United States, Puerto Rico, and Guam. The company is headquartered in Milwaukee, Wisconsin.

Want to dig deeper into these stocks?