Arch Capital Group Ltd. (ACGL)vsNu Holdings Ltd (NU)
ACGL
Arch Capital Group Ltd.
$96.09
-0.11%
FINANCIAL SERVICES · Cap: $33.47B
NU
Nu Holdings Ltd
$14.62
-2.66%
FINANCIAL SERVICES · Cap: $74.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 128% more annual revenue ($19.23B vs $8.44B). NU leads profitability with a 42.7% profit margin vs 24.4%. NU appears more attractively valued with a PEG of 0.71. NU earns a higher WallStSmart Score of 79/100 (B+).
ACGL
Strong Buy67
out of 100
Grade: B-
NU
Strong Buy79
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
Keeps 43 of every $100 in revenue as profit
Strong operational efficiency at 50.1%
Revenue surging 52.1% year-over-year
Earnings expanding 66.3% YoY
Large-cap with strong market position
Every $100 of equity generates 27 in profit
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Weak financial health signals
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 : NU
The strongest argument for NU centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 42.7% and operating margin at 50.1%. Revenue growth of 52.1% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : NU
The primary concerns for NU are Piotroski F-Score, Free Cash Flow, Altman Z-Score. Debt-to-equity of 3.17 is elevated, increasing financial risk.
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 0.94 — expect wider price swings.
NU is growing revenue faster at 52.1% — sustainability is the question.
ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
NU scores higher overall (79/100 vs 67/100), backed by strong 42.7% margins and 52.1% 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.
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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