Arch Capital Group Ltd. (ACGL)vsThe Hanover Insurance Group Inc (THG)
ACGL
Arch Capital Group Ltd.
$96.09
-0.11%
FINANCIAL SERVICES · Cap: $33.47B
THG
The Hanover Insurance Group Inc
$225.84
+0.82%
FINANCIAL SERVICES · Cap: $7.82B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 184% more annual revenue ($19.23B vs $6.76B). ACGL leads profitability with a 24.4% profit margin vs 11.2%. THG appears more attractively valued with a PEG of 0.34. THG earns a higher WallStSmart Score of 69/100 (B-).
ACGL
Strong Buy67
out of 100
Grade: B-
THG
Strong Buy69
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 26.6%
Generating 1.3B in free cash flow
Growing faster than its price suggests
Attractively priced relative to earnings
Every $100 of equity generates 20 in profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Earnings expanding 24.9% YoY
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
4.3% revenue growth
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ACGL
The strongest argument for ACGL centers on P/E Ratio, Price/Book, Profit Margin. 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 : THG
The strongest argument for THG centers on PEG Ratio, P/E Ratio, Return on Equity. PEG of 0.34 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 : THG
The primary concerns for THG are Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
ACGL profiles as a declining stock while THG is a value play — different risk/reward profiles.
ACGL carries more volatility with a beta of 0.28 — expect wider price swings.
THG is growing revenue faster at 4.3% — sustainability is the question.
ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
THG scores higher overall (69/100 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.
The Hanover Insurance Group Inc
FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA
Hanover Insurance Group, Inc. offers a variety of property and casualty insurance products and services in the United States. The company is headquartered in Worcester, Massachusetts.
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