WallStSmart

Arch Capital Group Ltd (ACGLO)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). ACGLO leads profitability with a 22.1% profit margin vs 13.5%. ACGLO trades at a lower P/E of 4.2x. HIG earns a higher WallStSmart Score of 79/100 (B+).

ACGLO

Buy

64

out of 100

Grade: C+

Growth: 8.7Profit: 8.0Value: 8.3Quality: 4.8
Piotroski: 3/9

HIG

Strong Buy

79

out of 100

Grade: B+

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ACGLOUndervalued (+90.5%)

Margin of Safety

+90.5%

Fair Value

$219.54

Current Price

$19.82

$199.72 discount

UndervaluedFair: $219.54Overvalued
HIGUndervalued (+77.2%)

Margin of Safety

+77.2%

Fair Value

$623.84

Current Price

$134.10

$489.74 discount

UndervaluedFair: $623.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGLO6 strengths · Avg: 8.8/10
P/E RatioValuation
4.2x10/10

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

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

EPS GrowthGrowth
38.8%8/10

Earnings expanding 38.8% YoY

Free Cash FlowQuality
$1.39B8/10

Generating 1.4B in free cash flow

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

Growing faster than its price suggests

P/E RatioValuation
10.2x10/10

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

ACGLO1 concerns · Avg: 3.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

HIG0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGLO

The strongest argument for ACGLO 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 : ACGLO

The primary concerns for ACGLO are Piotroski F-Score.

Bear Case : HIG

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

Key Dynamics to Monitor

ACGLO 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.

ACGLO 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 (79/100 vs 64/100). ACGLO offers better value entry with a 90.5% margin of safety. 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.

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.

Visit Website →

Want to dig deeper into these stocks?