WallStSmart

Arch Capital Group Ltd. (ACGL)vsTrupanion Inc (TRUP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 1235% more annual revenue ($19.78B vs $1.48B). ACGL leads profitability with a 24.6% profit margin vs 1.7%. ACGL trades at a lower P/E of 7.0x. 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

TRUP

Buy

53

out of 100

Grade: C-

Growth: 8.0Profit: 4.0Value: 4.7Quality: 7.0
Piotroski: 4/9Altman Z: 1.86

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

TRUP3 strengths · Avg: 9.0/10
EPS GrowthGrowth
235.1%10/10

Earnings expanding 235.1% YoY

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

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

TRUP4 concerns · Avg: 3.5/10
P/E RatioValuation
37.0x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.864/10

Grey zone — moderate risk

Market CapQuality
$951.80M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

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 : TRUP

The strongest argument for TRUP centers on EPS Growth, Debt/Equity, Price/Book. Revenue growth of 12.3% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : TRUP

The primary concerns for TRUP are P/E Ratio, Altman Z-Score, Market Cap. Thin 1.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

TRUP carries more volatility with a beta of 1.49 — expect wider price swings.

TRUP is growing revenue faster at 12.3% — sustainability is the question.

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

Bottom Line

ACGL scores higher overall (79/100 vs 53/100), backed by strong 24.6% margins. Both earn "Strong Buy" and "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.

Trupanion Inc

FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA

Trupanion, Inc. offers monthly subscription medical insurance for dogs and cats in the United States, Canada, Puerto Rico and Australia. The company is headquartered in Seattle, Washington.

Want to dig deeper into these stocks?