WallStSmart

Arch Capital Group Ltd. (ACGL)vsCanadian Natural Resources Ltd (CNQ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian Natural Resources Ltd generates 96% more annual revenue ($38.76B vs $19.78B). CNQ leads profitability with a 27.9% profit margin vs 24.6%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 79/100 (B+).

ACGL

Strong Buy

79

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 7.0Quality: 6.5
Piotroski: 5/9

CNQ

Strong Buy

67

out of 100

Grade: B-

Growth: 5.3Profit: 8.5Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ACGL.

CNQUndervalued (+55.1%)

Margin of Safety

+55.1%

Fair Value

$90.53

Current Price

$46.92

$43.61 discount

UndervaluedFair: $90.53Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 in profit

Profit MarginProfitability
24.6%9/10

Keeps 25 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

CNQ5 strengths · Avg: 9.4/10
P/E RatioValuation
11.8x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
371.8%10/10

Earnings expanding 371.8% YoY

Market CapQuality
$92.88B9/10

Large-cap with strong market position

Return on EquityProfitability
25.8%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
27.9%9/10

Keeps 28 of every $100 in revenue as profit

Areas to Watch

ACGL1 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

CNQ2 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.5%4/10

1.5% revenue growth

PEG RatioValuation
3.422/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, EPS Growth. Profitability is solid with margins at 24.6% and operating margin at 25.3%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : CNQ

The strongest argument for CNQ centers on P/E Ratio, EPS Growth, Market Cap. Profitability is solid with margins at 27.9% and operating margin at 19.6%.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth.

Bear Case : CNQ

The primary concerns for CNQ are Revenue Growth, PEG Ratio.

Key Dynamics to Monitor

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

CNQ carries more volatility with a beta of 0.91 — expect wider price swings.

CNQ is growing revenue faster at 1.5% — sustainability is the question.

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

Bottom Line

ACGL scores higher overall (79/100 vs 67/100), backed by strong 24.6% margins. CNQ offers better value entry with a 55.1% margin of safety. 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.

Canadian Natural Resources Ltd

ENERGY · OIL & GAS E&P · USA

Canadian Natural Resources Limited acquires, explores, develops, produces, markets and sells crude oil, natural gas and natural gas liquids (NGL). The company is headquartered in Calgary, Canada.

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