WallStSmart

Arch Capital Group Ltd. (ACGL)vsRenaissancere Holdings Ltd (RNR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 71% more annual revenue ($19.78B vs $11.59B). ACGL leads profitability with a 24.6% profit margin vs 24.2%. 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: 6.0
Piotroski: 6/9Altman Z: 1.48

RNR

Strong Buy

73

out of 100

Grade: B

Growth: 7.3Profit: 8.0Value: 5.7Quality: 8.5
Piotroski: 6/9Altman Z: 1.92

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 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

RNR6 strengths · Avg: 9.5/10
P/E RatioValuation
5.1x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

EPS GrowthGrowth
100.9%10/10

Earnings expanding 100.9% YoY

Return on EquityProfitability
24.4%9/10

Every $100 of equity generates 24 in profit

Profit MarginProfitability
24.2%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.209/10

Conservative balance sheet, low leverage

Areas to Watch

ACGL2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

RNR3 concerns · Avg: 2.7/10
Altman Z-ScoreHealth
1.924/10

Grey zone — moderate risk

PEG RatioValuation
3.622/10

Expensive relative to growth rate

Revenue GrowthGrowth
-36.6%2/10

Revenue declined 36.6%

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 : RNR

The strongest argument for RNR centers on P/E Ratio, Price/Book, EPS Growth. Profitability is solid with margins at 24.2% and operating margin at 26.8%.

Bear Case : ACGL

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

Bear Case : RNR

The primary concerns for RNR are Altman Z-Score, PEG Ratio, Revenue Growth.

Key Dynamics to Monitor

ACGL carries more volatility with a beta of 0.31 — expect wider price swings.

ACGL is growing revenue faster at -3.3% — 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 73/100), 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.

Renaissancere Holdings Ltd

FINANCIAL SERVICES · INSURANCE - REINSURANCE · USA

RenaissanceRe Holdings Ltd. provides insurance and reinsurance products in the United States and internationally. The company is headquartered in Pembroke, Bermuda.

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