WallStSmart

Arch Capital Group Ltd. (ACGL)vsServiceNow Inc (NOW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 42% more annual revenue ($19.78B vs $13.96B). ACGL leads profitability with a 24.6% profit margin vs 12.6%. NOW appears more attractively valued with a PEG of 0.89. ACGL earns a higher WallStSmart Score of 79/100 (B+).

ACGL

Strong Buy

79

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 7.0Quality: 6.5
Piotroski: 5/9

NOW

Buy

59

out of 100

Grade: C

Growth: 7.3Profit: 6.5Value: 6.7Quality: 3.8
Piotroski: 1/9Altman Z: 1.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ACGL.

NOWUndervalued (+85.2%)

Margin of Safety

+85.2%

Fair Value

$630.85

Current Price

$91.18

$539.67 discount

UndervaluedFair: $630.85Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 in profit

Profit MarginProfitability
24.6%9/10

Keeps 25 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

NOW4 strengths · Avg: 8.3/10
Market CapQuality
$96.52B9/10

Large-cap with strong market position

PEG RatioValuation
0.898/10

Growing faster than its price suggests

Revenue GrowthGrowth
22.1%8/10

Revenue surging 22.1% year-over-year

Free Cash FlowQuality
$1.53B8/10

Generating 1.5B in free cash flow

Areas to Watch

ACGL1 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

NOW4 concerns · Avg: 3.8/10
Price/BookValuation
8.0x4/10

Trading at 8.0x book value

EPS GrowthGrowth
2.3%4/10

2.3% earnings growth

Altman Z-ScoreHealth
1.654/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull 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 : NOW

The strongest argument for NOW centers on Market Cap, PEG Ratio, Revenue Growth. Revenue growth of 22.1% demonstrates continued momentum. PEG of 0.89 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth.

Bear Case : NOW

The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 55.7x leaves little room for execution misses.

Key Dynamics to Monitor

ACGL profiles as a declining stock while NOW is a growth play — different risk/reward profiles.

NOW carries more volatility with a beta of 0.82 — expect wider price swings.

NOW is growing revenue faster at 22.1% — sustainability is the question.

NOW generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (79/100 vs 59/100), backed by strong 24.6% margins. NOW offers better value entry with a 85.2% margin of safety. 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.

ServiceNow Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

ServiceNow is an American software company based in Santa Clara, California that develops a cloud computing platform to help companies manage digital workflows for enterprise operations.

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