WallStSmart

Arch Capital Group Ltd. (ACGL)vsUWM Holdings Corp (UWMC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 448% more annual revenue ($19.78B vs $3.61B). ACGL leads profitability with a 24.6% profit margin vs 1.8%. 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

UWMC

Strong Buy

66

out of 100

Grade: B-

Growth: 8.7Profit: 7.5Value: 6.7Quality: 3.8
Piotroski: 5/9Altman Z: 0.34

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

UWMC5 strengths · Avg: 9.4/10
P/E RatioValuation
7.9x10/10

Attractively priced relative to earnings

Operating MarginProfitability
40.7%10/10

Strong operational efficiency at 40.7%

EPS GrowthGrowth
277.8%10/10

Earnings expanding 277.8% YoY

Return on EquityProfitability
28.9%9/10

Every $100 of equity generates 29 in profit

Revenue GrowthGrowth
24.4%8/10

Revenue surging 24.4% year-over-year

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

UWMC4 concerns · Avg: 2.0/10
Profit MarginProfitability
1.8%3/10

1.8% margin — thin

Free Cash FlowQuality
$-2.25B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.342/10

Distress zone — elevated risk

Debt/EquityHealth
70.651/10

Elevated debt levels

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 : UWMC

The strongest argument for UWMC centers on P/E Ratio, Operating Margin, EPS Growth. Revenue growth of 24.4% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : UWMC

The primary concerns for UWMC are Profit Margin, Free Cash Flow, Altman Z-Score. Debt-to-equity of 70.65 is elevated, increasing financial risk. Thin 1.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

ACGL profiles as a declining stock while UWMC is a growth play — different risk/reward profiles.

UWMC carries more volatility with a beta of 1.77 — expect wider price swings.

UWMC is growing revenue faster at 24.4% — 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 66/100), 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.

UWM Holdings Corp

FINANCIAL SERVICES · MORTGAGE FINANCE · USA

UWM Holdings Corporation is engaged in the residential mortgage loan business in the United States. The company is headquartered in Pontiac, Michigan.

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