WallStSmart

Arch Capital Group Ltd. (ACGL)vsYum! Brands Inc (YUM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 133% more annual revenue ($19.78B vs $8.49B). ACGL leads profitability with a 24.6% profit margin vs 20.5%. ACGL appears more attractively valued with a PEG of 1.06. 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: 6.5
Piotroski: 5/9

YUM

Buy

65

out of 100

Grade: C+

Growth: 8.0Profit: 8.0Value: 4.0Quality: 4.5
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ACGL.

YUMSignificantly Overvalued (-76.3%)

Margin of Safety

-76.3%

Fair Value

$90.20

Current Price

$151.95

$61.75 premium

UndervaluedFair: $90.20Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 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

YUM4 strengths · Avg: 9.3/10
Operating MarginProfitability
31.0%10/10

Strong operational efficiency at 31.0%

EPS GrowthGrowth
72.2%10/10

Earnings expanding 72.2% YoY

Profit MarginProfitability
20.5%9/10

Keeps 21 of every $100 in revenue as profit

Revenue GrowthGrowth
15.2%8/10

15.2% revenue growth

Areas to Watch

ACGL1 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

YUM4 concerns · Avg: 3.5/10
PEG RatioValuation
1.934/10

Expensive relative to growth rate

P/E RatioValuation
25.4x4/10

Moderate valuation

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

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 : YUM

The strongest argument for YUM centers on Operating Margin, EPS Growth, Profit Margin. Profitability is solid with margins at 20.5% and operating margin at 31.0%. Revenue growth of 15.2% demonstrates continued momentum.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth.

Bear Case : YUM

The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.

Key Dynamics to Monitor

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

YUM carries more volatility with a beta of 0.60 — expect wider price swings.

YUM is growing revenue faster at 15.2% — 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 65/100), 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.

Yum! Brands Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.

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