Arch Capital Group Ltd (ACGL)vsPayPal Holdings Inc (PYPL)
ACGL
Arch Capital Group Ltd
$93.32
-0.30%
FINANCIAL SERVICES · Cap: $33.94B
PYPL
PayPal Holdings Inc
$44.85
+1.45%
FINANCIAL SERVICES · Cap: $41.37B
Smart Verdict
WallStSmart Research — data-driven comparison
PayPal Holdings Inc generates 66% more annual revenue ($33.17B vs $19.93B). ACGL leads profitability with a 22.1% profit margin vs 15.8%. PYPL appears more attractively valued with a PEG of 0.69. ACGL earns a higher WallStSmart Score of 81/100 (A-).
ACGL
Exceptional Buy81
out of 100
Grade: A-
PYPL
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+81.8%
Fair Value
$542.88
Current Price
$93.32
$449.56 discount
Margin of Safety
+82.3%
Fair Value
$253.19
Current Price
$44.85
$208.34 discount
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
Attractively priced relative to earnings
Every $100 of equity generates 26 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 39.4% YoY
Generating 2.2B in free cash flow
Areas to Watch
No major concerns identified
3.7% revenue growth
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 : PYPL
The strongest argument for PYPL centers on P/E Ratio, Return on Equity, PEG Ratio. Profitability is solid with margins at 15.8% and operating margin at 17.5%. PEG of 0.69 suggests the stock is reasonably priced for its growth.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : PYPL
The primary concerns for PYPL are Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
ACGL profiles as a mature stock while PYPL is a value play — different risk/reward profiles.
PYPL carries more volatility with a beta of 1.46 — expect wider price swings.
ACGL is growing revenue faster at 8.5% — sustainability is the question.
PYPL generates stronger free cash flow (2.2B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (81/100 vs 78/100), backed by strong 22.1% margins. PYPL offers better value entry with a 82.3% margin of safety. 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.
PayPal Holdings Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
PayPal Holdings, Inc. is an American company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper methods like checks and money orders. The company operates as a payment processor for online vendors, auction sites, and many other commercial users, for which it charges a fee.
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