WallStSmart

Arch Capital Group Ltd (ACGLN)vsHartford Financial Services Group (HIG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Hartford Financial Services Group generates 42% more annual revenue ($28.38B vs $19.93B). ACGLN leads profitability with a 22.1% profit margin vs 13.5%. ACGLN trades at a lower P/E of 3.6x. HIG earns a higher WallStSmart Score of 81/100 (A-).

ACGLN

Buy

52

out of 100

Grade: C-

Growth: 8.7Profit: 8.0Value: 8.3Quality: 6.5
Piotroski: 6/9Altman Z: 1.48

HIG

Exceptional Buy

81

out of 100

Grade: A-

Growth: 7.3Profit: 7.0Value: 10.0Quality: 8.3
Piotroski: 6/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ACGLNUndervalued (+92.0%)

Margin of Safety

+92.0%

Fair Value

$219.54

Current Price

$16.52

$203.02 discount

UndervaluedFair: $219.54Overvalued
HIGUndervalued (+77.4%)

Margin of Safety

+77.4%

Fair Value

$629.46

Current Price

$132.65

$496.81 discount

UndervaluedFair: $629.46Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGLN6 strengths · Avg: 9.0/10
P/E RatioValuation
3.6x10/10

Attractively priced relative to earnings

Price/BookValuation
0.3x10/10

Reasonable price relative to book value

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

EPS GrowthGrowth
38.8%8/10

Earnings expanding 38.8% YoY

HIG6 strengths · Avg: 9.0/10
PEG RatioValuation
0.1210/10

Growing faster than its price suggests

P/E RatioValuation
9.9x10/10

Attractively priced relative to earnings

Return on EquityProfitability
21.7%9/10

Every $100 of equity generates 22 in profit

Debt/EquityHealth
0.239/10

Conservative balance sheet, low leverage

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
20.0%8/10

Strong operational efficiency at 20.0%

Areas to Watch

ACGLN1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

HIG0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGLN

The strongest argument for ACGLN centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 22.1% and operating margin at 29.5%.

Bull Case : HIG

The strongest argument for HIG centers on PEG Ratio, P/E Ratio, Return on Equity. PEG of 0.12 suggests the stock is reasonably priced for its growth.

Bear Case : ACGLN

The primary concerns for ACGLN are Altman Z-Score.

Bear Case : HIG

No major red flags identified for HIG, but monitor valuation.

Key Dynamics to Monitor

ACGLN profiles as a mature stock while HIG is a value play — different risk/reward profiles.

HIG carries more volatility with a beta of 0.52 — expect wider price swings.

ACGLN is growing revenue faster at 8.5% — sustainability is the question.

HIG generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

HIG scores higher overall (81/100 vs 52/100). ACGLN offers better value entry with a 92.0% margin of safety. Both earn "Exceptional 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. (ACGLN) is a leading global insurer and reinsurer, actively engaged in property, casualty, and mortgage insurance markets across North America, Europe, and Asia. The company is recognized for its disciplined underwriting practices and advanced risk management approaches, which enable it to adeptly manage a diverse portfolio of exposures. With a robust capital foundation and a focus on operational efficiency, Arch Capital is well-equipped to meet the evolving needs of its clients while driving sustainable shareholder returns. Furthermore, the firm's proactive investments in technology and data analytics enhance its competitive edge in a rapidly changing industry landscape.

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Hartford Financial Services Group

FINANCIAL SERVICES · INSURANCE - DIVERSIFIED · USA

The Hartford Financial Services Group, Inc., usually known as The Hartford, is a United States-based investment and insurance company.

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