WallStSmart

Arch Capital Group Ltd. (ACGL)vsNelnet Inc (NNI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 1192% more annual revenue ($19.23B vs $1.49B). ACGL leads profitability with a 24.4% profit margin vs 20.3%. NNI appears more attractively valued with a PEG of 0.46. ACGL 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

NNI

Buy

56

out of 100

Grade: C

Growth: 3.3Profit: 6.5Value: 7.7Quality: 4.5
Piotroski: 7/9Altman Z: 1.13

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

NNI4 strengths · Avg: 9.3/10
PEG RatioValuation
0.4610/10

Growing faster than its price suggests

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Profit MarginProfitability
20.3%9/10

Keeps 20 of every $100 in revenue as profit

P/E RatioValuation
15.0x8/10

Attractively priced relative to earnings

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

NNI4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.873/10

Elevated debt levels

Revenue GrowthGrowth
-30.5%2/10

Revenue declined 30.5%

EPS GrowthGrowth
-62.8%2/10

Earnings declined 62.8%

Altman Z-ScoreHealth
1.132/10

Distress zone — elevated risk

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 : NNI

The strongest argument for NNI centers on PEG Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 20.3% and operating margin at 18.2%. PEG of 0.46 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 : NNI

The primary concerns for NNI are Debt/Equity, Revenue Growth, EPS Growth. Debt-to-equity of 1.87 is elevated, increasing financial risk.

Key Dynamics to Monitor

NNI carries more volatility with a beta of 0.76 — expect wider price swings.

ACGL is growing revenue faster at -10.5% — 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 56/100), backed by strong 24.4% margins. Both earn "Strong 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.

Nelnet Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

Nelnet, Inc. is engaged in the loan management, communications and educational technology, services and payment processing businesses globally. The company is headquartered in Lincoln, Nebraska.

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