WallStSmart

Arch Capital Group Ltd. (ACGL)vsAmerican International Group Inc (AIG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American International Group Inc generates 39% more annual revenue ($26.70B vs $19.23B). ACGL leads profitability with a 24.4% profit margin vs 11.8%. AIG appears more attractively valued with a PEG of 0.65. AIG earns a higher WallStSmart Score of 69/100 (B-).

ACGL

Strong Buy

67

out of 100

Grade: B-

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

AIG

Strong Buy

69

out of 100

Grade: B-

Growth: 4.7Profit: 5.5Value: 7.0Quality: 5.0
Piotroski: 4/9Altman Z: 0.67

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.2/10
P/E RatioValuation
7.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

AIG5 strengths · Avg: 8.6/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.239/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.658/10

Growing faster than its price suggests

P/E RatioValuation
13.9x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
21.6%8/10

Earnings expanding 21.6% YoY

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

AIG3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.4%4/10

1.4% revenue growth

Return on EquityProfitability
7.8%3/10

ROE of 7.8% — below average capital efficiency

Altman Z-ScoreHealth
0.672/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, Return on Equity. 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 : AIG

The strongest argument for AIG centers on Price/Book, Debt/Equity, PEG Ratio. PEG of 0.65 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

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

Bear Case : AIG

The primary concerns for AIG are Revenue Growth, Return on Equity, Altman Z-Score.

Key Dynamics to Monitor

ACGL profiles as a declining stock while AIG is a value play — different risk/reward profiles.

AIG carries more volatility with a beta of 0.54 — expect wider price swings.

AIG is growing revenue faster at 1.4% — sustainability is the question.

ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.

Bottom Line

AIG scores higher overall (69/100 vs 67/100). Both earn "Strong 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.

American International Group Inc

FINANCIAL SERVICES · INSURANCE - DIVERSIFIED · USA

American International Group, Inc., also known as AIG, is an American multinational finance and insurance corporation with operations in more than 80 countries and jurisdictions. The company operates through three core businesses: General Insurance, Life & Retirement, and a standalone technology-enabled subsidiary.

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