Arch Capital Group Ltd. (ACGL)vsPRA Group Inc (PRAA)
ACGL
Arch Capital Group Ltd.
$104.55
-1.81%
FINANCIAL SERVICES · Cap: $35.41B
PRAA
PRA Group Inc
$17.61
-2.38%
FINANCIAL SERVICES · Cap: $702.17M
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 1486% more annual revenue ($19.78B vs $1.25B). ACGL leads profitability with a 24.6% profit margin vs -22.5%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 79/100 (B+).
ACGL
Strong Buy79
out of 100
Grade: B+
PRAA
Buy64
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Earnings expanding 94.6% YoY
Every $100 of equity generates 20 in profit
Keeps 25 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Reasonable price relative to book value
Strong operational efficiency at 32.8%
Earnings expanding 711.0% YoY
Conservative balance sheet, low leverage
16.7% revenue growth
Areas to Watch
Revenue declined 3.3%
Distress zone — elevated risk
Smaller company, higher risk/reward
Expensive relative to growth rate
ROE of -28.0% — below average capital efficiency
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ACGL
The strongest argument for ACGL centers on P/E Ratio, EPS Growth, Return on Equity. 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 : PRAA
The strongest argument for PRAA centers on Price/Book, Operating Margin, EPS Growth. Revenue growth of 16.7% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, Altman Z-Score.
Bear Case : PRAA
The primary concerns for PRAA are Market Cap, PEG Ratio, Return on Equity.
Key Dynamics to Monitor
ACGL profiles as a declining stock while PRAA is a growth play — different risk/reward profiles.
PRAA carries more volatility with a beta of 1.10 — expect wider price swings.
PRAA is growing revenue faster at 16.7% — sustainability is the question.
ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (79/100 vs 64/100), backed by strong 24.6% margins. Both earn "Strong Buy" and "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.
PRA Group Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
PRA Group, Inc., a service company, is engaged in the purchase, collection and management of delinquent loan portfolios in the Americas, Australia and Europe. The company is headquartered in Norfolk, Virginia.
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