WallStSmart

Arch Capital Group Ltd. (ACGL)vsNu Holdings Ltd (NU)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 160% more annual revenue ($19.78B vs $7.59B). NU leads profitability with a 41.9% profit margin vs 24.6%. NU appears more attractively valued with a PEG of 0.70. NU earns a higher WallStSmart Score of 84/100 (A-).

ACGL

Strong Buy

79

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

NU

Exceptional Buy

84

out of 100

Grade: A-

Growth: 10.0Profit: 9.0Value: 6.3Quality: 4.5
Piotroski: 2/9Altman Z: 0.22

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 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

NU6 strengths · Avg: 9.7/10
Profit MarginProfitability
41.9%10/10

Keeps 42 of every $100 in revenue as profit

Operating MarginProfitability
48.2%10/10

Strong operational efficiency at 48.2%

Revenue GrowthGrowth
43.7%10/10

Revenue surging 43.7% year-over-year

EPS GrowthGrowth
55.9%10/10

Earnings expanding 55.9% YoY

Market CapQuality
$57.85B9/10

Large-cap with strong market position

Return on EquityProfitability
25.3%9/10

Every $100 of equity generates 25 in profit

Areas to Watch

ACGL2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

NU3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-1.29B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.222/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, 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 : NU

The strongest argument for NU centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 41.9% and operating margin at 48.2%. Revenue growth of 43.7% demonstrates continued momentum.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth, Altman Z-Score.

Bear Case : NU

The primary concerns for NU are Piotroski F-Score, Free Cash Flow, Altman Z-Score.

Key Dynamics to Monitor

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

NU carries more volatility with a beta of 0.95 — expect wider price swings.

NU is growing revenue faster at 43.7% — sustainability is the question.

ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.

Bottom Line

NU scores higher overall (84/100 vs 79/100), backed by strong 41.9% margins and 43.7% revenue growth. Both earn "Exceptional 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.

Nu Holdings Ltd

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Nu Holdings Ltd. operates in the technology industry. The company is headquartered in Grand Cayman, Cayman Islands.

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