Arch Capital Group Ltd. (ACGL)vsWPP PLC ADR (WPP)
ACGL
Arch Capital Group Ltd.
$93.80
-0.76%
FINANCIAL SERVICES · Cap: $33.09B
WPP
WPP PLC ADR
$18.97
+1.12%
COMMUNICATION SERVICES · Cap: $4.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 46% more annual revenue ($19.78B vs $13.55B). ACGL leads profitability with a 24.6% profit margin vs -1.6%. 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+
WPP
Avoid32
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ACGL.
Margin of Safety
+75.6%
Fair Value
$75.12
Current Price
$18.97
$56.15 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
Generating 1.7B in free cash flow
Areas to Watch
Revenue declined 3.3%
Operating margin of 2.2%
Weak financial health signals
Expensive relative to growth rate
ROE of -5.3% — below average capital efficiency
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 : WPP
The strongest argument for WPP centers on Free Cash Flow.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth.
Bear Case : WPP
The primary concerns for WPP are Operating Margin, Piotroski F-Score, PEG Ratio. Debt-to-equity of 2.13 is elevated, increasing financial risk.
Key Dynamics to Monitor
ACGL profiles as a declining stock while WPP is a turnaround play — different risk/reward profiles.
WPP carries more volatility with a beta of 0.65 — expect wider price swings.
ACGL is growing revenue faster at -3.3% — sustainability is the question.
WPP generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (79/100 vs 32/100), backed by strong 24.6% margins. WPP offers better value entry with a 75.6% margin of safety. Both earn "Strong Buy" and "Avoid" 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.
WPP PLC ADR
COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA
WPP plc, a creative transformation company, provides communications, expertise, trade and technology services in North America, the UK, Western Continental Europe, Asia Pacific, Latin America, Africa, the Middle East, and Central and Eastern Europe. The company is headquartered in London, the United Kingdom.
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