Arch Capital Group Ltd (ACGL)vsNu Holdings Ltd (NU)
ACGL
Arch Capital Group Ltd
$94.46
+1.88%
FINANCIAL SERVICES · Cap: $34.58B
NU
Nu Holdings Ltd
$14.48
+3.13%
FINANCIAL SERVICES · Cap: $70.38B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd generates 185% more annual revenue ($19.93B vs $6.99B). NU leads profitability with a 41.0% profit margin vs 22.1%. NU appears more attractively valued with a PEG of 0.85. ACGL earns a higher WallStSmart Score of 81/100 (A-).
ACGL
Exceptional Buy81
out of 100
Grade: A-
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 22 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 29.5%
Earnings expanding 38.8% YoY
Every $100 of equity generates 30 in profit
Keeps 41 of every $100 in revenue as profit
Strong operational efficiency at 52.1%
Revenue surging 43.9% year-over-year
Earnings expanding 60.9% YoY
Large-cap with strong market position
Areas to Watch
No major concerns identified
Distress zone — elevated risk
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 22.1% and operating margin at 29.5%. PEG of 1.06 suggests the stock is reasonably priced for its growth.
Bull Case : NU
The strongest argument for NU centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 41.0% and operating margin at 52.1%. Revenue growth of 43.9% demonstrates continued momentum.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : NU
The primary concerns for NU are Altman Z-Score.
Key Dynamics to Monitor
ACGL profiles as a mature stock while NU is a growth play — different risk/reward profiles.
NU carries more volatility with a beta of 1.11 — expect wider price swings.
NU is growing revenue faster at 43.9% — sustainability is the question.
ACGL generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (81/100 vs 79/100), backed by strong 22.1% margins. 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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