Arch Capital Group Ltd (ACGL)vsCredit Acceptance Corporation (CACC)
ACGL
Arch Capital Group Ltd
$94.46
+1.88%
FINANCIAL SERVICES · Cap: $34.58B
CACC
Credit Acceptance Corporation
$504.84
-0.01%
FINANCIAL SERVICES · Cap: $5.53B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd generates 1510% more annual revenue ($19.93B vs $1.24B). CACC leads profitability with a 34.2% profit margin vs 22.1%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 81/100 (A-).
ACGL
Exceptional Buy81
out of 100
Grade: A-
CACC
Buy63
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 22 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 29.5%
Earnings expanding 38.8% YoY
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 46.7%
Every $100 of equity generates 26 in profit
Attractively priced relative to earnings
Areas to Watch
No major concerns identified
1.6% revenue growth
Earnings declined 10.4%
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 22.1% and operating margin at 29.5%. 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, Return on Equity. Profitability is solid with margins at 34.2% and operating margin at 46.7%. PEG of 1.15 suggests the stock is reasonably priced for its growth.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : CACC
The primary concerns for CACC are Revenue Growth, EPS Growth, Altman Z-Score. Debt-to-equity of 4.17 is elevated, increasing financial risk.
Key Dynamics to Monitor
ACGL profiles as a mature stock while CACC is a value play — different risk/reward profiles.
CACC carries more volatility with a beta of 1.32 — expect wider price swings.
ACGL is growing revenue faster at 8.5% — sustainability is the question.
ACGL generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (81/100 vs 63/100), backed by strong 22.1% margins. 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., 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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