WallStSmart

Arch Capital Group Ltd. (ACGL)vsRLI Corp (RLI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 874% more annual revenue ($19.23B vs $1.97B). ACGL leads profitability with a 24.4% profit margin vs 22.2%. ACGL appears more attractively valued with a PEG of 1.06. RLI earns a higher WallStSmart Score of 77/100 (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

RLI

Strong Buy

77

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 5.7Quality: 5.0
Piotroski: 4/9Altman Z: 0.99

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.2/10
P/E RatioValuation
7.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

RLI6 strengths · Avg: 8.8/10
Operating MarginProfitability
36.9%10/10

Strong operational efficiency at 36.9%

Return on EquityProfitability
22.0%9/10

Every $100 of equity generates 22 in profit

Profit MarginProfitability
22.2%9/10

Keeps 22 of every $100 in revenue as profit

Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

P/E RatioValuation
12.9x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
15.2%8/10

15.2% revenue growth

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

RLI2 concerns · Avg: 3.0/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.992/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, Return on Equity. 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 : RLI

The strongest argument for RLI centers on Operating Margin, Return on Equity, Profit Margin. Profitability is solid with margins at 22.2% and operating margin at 36.9%. Revenue growth of 15.2% demonstrates continued momentum.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.

Bear Case : RLI

The primary concerns for RLI are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

ACGL profiles as a declining stock while RLI is a growth play — different risk/reward profiles.

RLI carries more volatility with a beta of 0.33 — expect wider price swings.

RLI is growing revenue faster at 15.2% — sustainability is the question.

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

Bottom Line

RLI scores higher overall (77/100 vs 67/100), backed by strong 22.2% margins and 15.2% 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.

RLI Corp

FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA

RLI Corp. The company is headquartered in Peoria, Illinois.

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