WallStSmart

Arch Capital Group Ltd. (ACGL)vsPrudential Financial, Inc. (PRU)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Prudential Financial, Inc. generates 239% more annual revenue ($65.22B vs $19.23B). ACGL leads profitability with a 24.4% profit margin vs 6.0%. PRU appears more attractively valued with a PEG of 0.71. PRU earns a higher WallStSmart Score of 72/100 (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

PRU

Strong Buy

72

out of 100

Grade: B

Growth: 6.7Profit: 5.0Value: 7.7Quality: 5.0
Piotroski: 4/9Altman Z: 0.05

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

PRU5 strengths · Avg: 9.2/10
P/E RatioValuation
10.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
89.2%10/10

Earnings expanding 89.2% YoY

PEG RatioValuation
0.718/10

Growing faster than its price suggests

Free Cash FlowQuality
$2.35B8/10

Generating 2.3B in free cash flow

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

PRU2 concerns · Avg: 2.5/10
Profit MarginProfitability
6.0%3/10

6.0% margin — thin

Altman Z-ScoreHealth
0.052/10

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 : PRU

The strongest argument for PRU centers on P/E Ratio, Price/Book, EPS Growth. Revenue growth of 14.1% demonstrates continued momentum. PEG of 0.71 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 : PRU

The primary concerns for PRU are Profit Margin, Altman Z-Score.

Key Dynamics to Monitor

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

PRU carries more volatility with a beta of 0.82 — expect wider price swings.

PRU is growing revenue faster at 14.1% — sustainability is the question.

PRU generates stronger free cash flow (2.3B), providing more financial flexibility.

Bottom Line

PRU scores higher overall (72/100 vs 67/100) and 14.1% 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.

Prudential Financial, Inc.

FINANCIAL SERVICES · INSURANCE - LIFE · USA

Prudential Financial, Inc. is an American company whose subsidiaries provide insurance, investment management, and other financial products and services to both retail and institutional customers throughout the United States and in over 40 other countries.

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