WallStSmart

Arch Capital Group Ltd. (ACGL)vsQnity Electronics, Inc (Q)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 316% more annual revenue ($19.78B vs $4.75B). ACGL leads profitability with a 24.6% profit margin vs 14.6%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 79/100 (B+).

ACGL

Strong Buy

79

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 7.0Quality: 6.5
Piotroski: 5/9

Q

Hold

49

out of 100

Grade: D+

Growth: 3.3Profit: 6.0Value: 3.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ACGL.

QOvervalued (-9.0%)

Margin of Safety

-9.0%

Fair Value

$105.09

Current Price

$143.59

$38.50 premium

UndervaluedFair: $105.09Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 in profit

Profit MarginProfitability
24.6%9/10

Keeps 25 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Q1 strengths · Avg: 8.0/10
Operating MarginProfitability
20.4%8/10

Strong operational efficiency at 20.4%

Areas to Watch

ACGL1 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Q4 concerns · Avg: 2.3/10
Return on EquityProfitability
8.0%3/10

ROE of 8.0% — below average capital efficiency

PEG RatioValuation
2.862/10

Expensive relative to growth rate

P/E RatioValuation
43.5x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-52.8%2/10

Earnings declined 52.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, EPS Growth. 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 : Q

The strongest argument for Q centers on Operating Margin.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth.

Bear Case : Q

The primary concerns for Q are Return on Equity, PEG Ratio, P/E Ratio. A P/E of 43.5x leaves little room for execution misses.

Key Dynamics to Monitor

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

Q is growing revenue faster at 8.1% — sustainability is the question.

ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.

Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ACGL scores higher overall (79/100 vs 49/100), backed by strong 24.6% margins. Both earn "Strong Buy" and "Hold" 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.

Qnity Electronics, Inc

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

IQVIA Holdings Inc. provides integrated information and technology-enabled healthcare services in the Americas, Europe, Africa, and Asia-Pacific. The company is headquartered in Durham, North Carolina.

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