WallStSmart

Arch Capital Group Ltd. (ACGL)vsWhite Mountains Insurance Group Ltd (WTM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 546% more annual revenue ($19.23B vs $2.98B). WTM leads profitability with a 37.7% profit margin vs 24.4%. WTM appears more attractively valued with a PEG of 0.81. WTM earns a higher WallStSmart Score of 92/100 (A+).

ACGL

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

WTM

Exceptional Buy

92

out of 100

Grade: A+

Growth: 9.3Profit: 8.5Value: 7.7Quality: 6.3
Piotroski: 3/9Altman Z: 1.83

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
7.7x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

Free Cash FlowQuality
$1.31B8/10

Generating 1.3B in free cash flow

WTM6 strengths · Avg: 9.8/10
P/E RatioValuation
4.7x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
37.7%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
36.4%10/10

Strong operational efficiency at 36.4%

EPS GrowthGrowth
68.8%10/10

Earnings expanding 68.8% YoY

Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

Areas to Watch

ACGL3 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-10.5%2/10

Revenue declined 10.5%

EPS GrowthGrowth
-7.1%2/10

Earnings declined 7.1%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

WTM3 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.834/10

Grey zone — moderate risk

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-25.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull 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 : WTM

The strongest argument for WTM centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 37.7% and operating margin at 36.4%. Revenue growth of 22.5% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : WTM

The primary concerns for WTM are Altman Z-Score, Piotroski F-Score, Free Cash Flow.

Key Dynamics to Monitor

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

WTM carries more volatility with a beta of 0.29 — expect wider price swings.

WTM is growing revenue faster at 22.5% — sustainability is the question.

ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

WTM scores higher overall (92/100 vs 67/100), backed by strong 37.7% margins and 22.5% revenue growth. Both earn "Exceptional 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.

White Mountains Insurance Group Ltd

FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA

White Mountains Insurance Group, Ltd., provides insurance services in the United States. The company is headquartered in Hamilton, Bermuda.

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