Arch Capital Group Ltd. (ACGL)vsRadian Group Inc (RDN)
ACGL
Arch Capital Group Ltd.
$101.14
-3.26%
FINANCIAL SERVICES · Cap: $35.41B
RDN
Radian Group Inc
$39.71
+1.12%
FINANCIAL SERVICES · Cap: $5.17B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 1343% more annual revenue ($19.78B vs $1.37B). RDN leads profitability with a 41.0% profit margin vs 24.6%. RDN appears more attractively valued with a PEG of 0.76. ACGL earns a higher WallStSmart Score of 79/100 (B+).
ACGL
Strong Buy79
out of 100
Grade: B+
RDN
Strong Buy75
out of 100
Grade: B+
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
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 41 of every $100 in revenue as profit
Strong operational efficiency at 46.6%
Revenue surging 58.8% year-over-year
Safe zone — low bankruptcy risk
Areas to Watch
Revenue declined 3.3%
Distress zone — elevated risk
Earnings declined 9.0%
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 : RDN
The strongest argument for RDN centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 41.0% and operating margin at 46.6%. Revenue growth of 58.8% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, Altman Z-Score.
Bear Case : RDN
The primary concerns for RDN are EPS Growth.
Key Dynamics to Monitor
ACGL profiles as a declining stock while RDN is a growth play — different risk/reward profiles.
RDN carries more volatility with a beta of 0.72 — expect wider price swings.
RDN is growing revenue faster at 58.8% — 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 75/100), backed by strong 24.6% margins. 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.
Radian Group Inc
FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA
Radian Group Inc. is engaged in the mortgage and real estate services business in the United States. The company is headquartered in Philadelphia, Pennsylvania.
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