Arch Capital Group Ltd. (ACGL)vsCredit Acceptance Corporation (CACC)
ACGL
Arch Capital Group Ltd.
$96.09
-0.11%
FINANCIAL SERVICES · Cap: $33.47B
CACC
Credit Acceptance Corporation
$604.24
-0.20%
FINANCIAL SERVICES · Cap: $6.16B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 1376% more annual revenue ($19.23B vs $1.30B). CACC leads profitability with a 38.5% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. CACC earns a higher WallStSmart Score of 75/100 (B).
ACGL
Strong Buy67
out of 100
Grade: B-
CACC
Strong Buy75
out of 100
Grade: B
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 26.6%
Generating 1.3B in free cash flow
Keeps 39 of every $100 in revenue as profit
Strong operational efficiency at 52.6%
Earnings expanding 70.6% YoY
Every $100 of equity generates 30 in profit
Attractively priced relative to earnings
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull 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 : CACC
The strongest argument for CACC centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 38.5% and operating margin at 52.6%. PEG of 1.15 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 : CACC
The primary concerns for CACC are Altman Z-Score, Debt/Equity. Debt-to-equity of 3.96 is elevated, increasing financial risk.
Key Dynamics to Monitor
ACGL profiles as a declining stock while CACC is a mature play — different risk/reward profiles.
CACC carries more volatility with a beta of 1.35 — expect wider price swings.
CACC is growing revenue faster at 9.5% — sustainability is the question.
ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
CACC scores higher overall (75/100 vs 67/100), backed by strong 38.5% margins. 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.
Credit Acceptance Corporation
FINANCIAL SERVICES · CREDIT SERVICES · USA
Credit Acceptance Corporation offers financing programs and related products and services to independent and franchised automobile dealerships in the United States. The company is headquartered in Southfield, Michigan.
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