Arch Capital Group Ltd. (ACGL)vsTenet Healthcare Corporation (THC)
ACGL
Arch Capital Group Ltd.
$93.80
-0.76%
FINANCIAL SERVICES · Cap: $33.09B
THC
Tenet Healthcare Corporation
$190.38
-1.93%
HEALTHCARE · Cap: $16.72B
Smart Verdict
WallStSmart Research — data-driven comparison
Tenet Healthcare Corporation generates 8% more annual revenue ($21.45B vs $19.78B). ACGL leads profitability with a 24.6% profit margin vs 7.9%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 79/100 (B+).
ACGL
Strong Buy79
out of 100
Grade: B+
THC
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ACGL.
Margin of Safety
+78.8%
Fair Value
$1068.55
Current Price
$190.38
$878.17 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 94.6% YoY
Every $100 of equity generates 21 in profit
Keeps 25 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Earnings expanding 87.6% YoY
Generating 1.5B in free cash flow
Areas to Watch
Revenue declined 3.3%
2.8% revenue growth
Distress zone — elevated risk
7.9% margin — thin
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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 : THC
The strongest argument for THC centers on P/E Ratio, Return on Equity, EPS Growth.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth.
Bear Case : THC
The primary concerns for THC are Revenue Growth, Altman Z-Score, Profit Margin.
Key Dynamics to Monitor
ACGL profiles as a declining stock while THC is a value play — different risk/reward profiles.
THC carries more volatility with a beta of 1.30 — expect wider price swings.
THC is growing revenue faster at 2.8% — sustainability is the question.
THC generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (79/100 vs 66/100), backed by strong 24.6% margins. THC offers better value entry with a 78.8% margin of safety. 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.
Tenet Healthcare Corporation
HEALTHCARE · MEDICAL CARE FACILITIES · USA
Tenet Healthcare Corporation is a diversified health services company. The company is headquartered in Dallas, Texas.
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