WallStSmart

Arch Capital Group Ltd. (ACGL)vsSelective Insurance Group, Inc. (SIGI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 252% more annual revenue ($19.23B vs $5.47B). ACGL leads profitability with a 24.4% profit margin vs 9.1%. SIGI appears more attractively valued with a PEG of 0.28. SIGI earns a higher WallStSmart Score of 68/100 (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

SIGI

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 5.5Value: 8.3Quality: 5.5
Piotroski: 4/9Altman Z: 1.00

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%

SIGI5 strengths · Avg: 9.4/10
PEG RatioValuation
0.2810/10

Growing faster than its price suggests

P/E RatioValuation
11.8x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
55.1%10/10

Earnings expanding 55.1% YoY

Debt/EquityHealth
0.259/10

Conservative balance sheet, low leverage

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

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

SIGI2 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.5%4/10

4.5% revenue growth

Altman Z-ScoreHealth
1.002/10

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 : SIGI

The strongest argument for SIGI centers on PEG Ratio, P/E Ratio, EPS Growth. PEG of 0.28 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

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

Bear Case : SIGI

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

Key Dynamics to Monitor

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

ACGL carries more volatility with a beta of 0.29 — expect wider price swings.

SIGI is growing revenue faster at 4.5% — sustainability is the question.

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

Bottom Line

SIGI scores higher overall (68/100 vs 67/100). 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.

Selective Insurance Group, Inc.

FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA

Selective Insurance Group, Inc., offers insurance products and services in the United States. The company is headquartered in Branchville, New Jersey.

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