WallStSmart

Arch Capital Group Ltd. (ACGL)vsOnity Group Inc. (ONIT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 1576% more annual revenue ($19.23B vs $1.15B). ACGL leads profitability with a 24.4% profit margin vs 12.3%. ONIT appears more attractively valued with a PEG of 0.62. ONIT earns a higher WallStSmart Score of 74/100 (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

ONIT

Strong Buy

74

out of 100

Grade: B

Growth: 4.0Profit: 7.5Value: 7.7Quality: 5.5
Piotroski: 4/9Altman 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

ONIT5 strengths · Avg: 9.4/10
P/E RatioValuation
2.2x10/10

Attractively priced relative to earnings

Price/BookValuation
0.5x10/10

Reasonable price relative to book value

Operating MarginProfitability
50.9%10/10

Strong operational efficiency at 50.9%

Return on EquityProfitability
29.4%9/10

Every $100 of equity generates 29 in profit

PEG RatioValuation
0.628/10

Growing faster than its price suggests

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

ONIT4 concerns · Avg: 2.3/10
Market CapQuality
$284.89M3/10

Smaller company, higher risk/reward

EPS GrowthGrowth
-70.4%2/10

Earnings declined 70.4%

Free Cash FlowQuality
$-702.10M2/10

Negative free cash flow — burning cash

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 : ONIT

The strongest argument for ONIT centers on P/E Ratio, Price/Book, Operating Margin. Revenue growth of 14.7% demonstrates continued momentum. PEG of 0.62 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 : ONIT

The primary concerns for ONIT are Market Cap, EPS Growth, Free Cash Flow. Debt-to-equity of 16.43 is elevated, increasing financial risk.

Key Dynamics to Monitor

ACGL profiles as a declining stock while ONIT is a value play — different risk/reward profiles.

ONIT carries more volatility with a beta of 1.46 — expect wider price swings.

ONIT is growing revenue faster at 14.7% — sustainability is the question.

ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

ONIT scores higher overall (74/100 vs 67/100) and 14.7% 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.

Onity Group Inc.

FINANCIAL SERVICES · MORTGAGE FINANCE · USA

Onity Group Inc., a financial services company, originates and services mortgage loans in the United States, the United States Virgin Islands, India, and the Philippines. The company is headquartered in West Palm Beach, Florida.

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