WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 1768% more annual revenue ($19.93B vs $1.07B). ACGL leads profitability with a 22.1% profit margin vs 17.8%. ONIT appears more attractively valued with a PEG of 0.62. ONIT earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

81

out of 100

Grade: A-

Growth: 8.7Profit: 8.0Value: 7.0Quality: 6.5
Piotroski: 5/9

ONIT

Exceptional Buy

81

out of 100

Grade: A-

Growth: 4.7Profit: 8.0Value: 7.7Quality: 5.0

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

EPS GrowthGrowth
38.8%8/10

Earnings expanding 38.8% YoY

ONIT6 strengths · Avg: 9.3/10
P/E RatioValuation
2.1x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Return on EquityProfitability
32.4%10/10

Every $100 of equity generates 32 in profit

Operating MarginProfitability
52.9%10/10

Strong operational efficiency at 52.9%

PEG RatioValuation
0.628/10

Growing faster than its price suggests

Revenue GrowthGrowth
29.0%8/10

Revenue surging 29.0% year-over-year

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

ONIT3 concerns · Avg: 2.3/10
Market CapQuality
$390.89M3/10

Smaller company, higher risk/reward

EPS GrowthGrowth
-23.4%2/10

Earnings declined 23.4%

Free Cash FlowQuality
$-471.00M2/10

Negative free cash flow — burning cash

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 22.1% and operating margin at 29.5%. 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, Return on Equity. Profitability is solid with margins at 17.8% and operating margin at 52.9%. Revenue growth of 29.0% demonstrates continued momentum.

Bear Case : ACGL

No major red flags identified for ACGL, but monitor valuation.

Bear Case : ONIT

The primary concerns for ONIT are Market Cap, EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

ACGL profiles as a mature stock while ONIT is a growth play — different risk/reward profiles.

ONIT carries more volatility with a beta of 1.56 — expect wider price swings.

ONIT is growing revenue faster at 29.0% — 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 81/100), backed by strong 22.1% margins. Both earn "Exceptional Buy" and "Exceptional 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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