WallStSmart

Arch Capital Group Ltd. (ACGL)vsDiamond Hill Investment Group Inc (DHIL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 13345% more annual revenue ($19.78B vs $147.10M). DHIL leads profitability with a 33.2% profit margin vs 24.6%. DHIL appears more attractively valued with a PEG of 0.55. 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

DHIL

Strong Buy

72

out of 100

Grade: B

Growth: 4.7Profit: 9.0Value: 7.7Quality: 8.5
Piotroski: 4/9Altman Z: 3.73

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

DHIL6 strengths · Avg: 9.5/10
P/E RatioValuation
9.8x10/10

Attractively priced relative to earnings

Profit MarginProfitability
33.2%10/10

Keeps 33 of every $100 in revenue as profit

Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.7310/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
29.1%9/10

Every $100 of equity generates 29 in profit

PEG RatioValuation
0.558/10

Growing faster than its price suggests

Areas to Watch

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

Revenue declined 3.3%

DHIL3 concerns · Avg: 2.3/10
Market CapQuality
$473.41M3/10

Smaller company, higher risk/reward

Revenue GrowthGrowth
-6.6%2/10

Revenue declined 6.6%

Free Cash FlowQuality
$-1.26B2/10

Negative free cash flow — burning cash

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 : DHIL

The strongest argument for DHIL centers on P/E Ratio, Profit Margin, Debt/Equity. Profitability is solid with margins at 33.2% and operating margin at 24.8%. PEG of 0.55 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth.

Bear Case : DHIL

The primary concerns for DHIL are Market Cap, Revenue Growth, Free Cash Flow.

Key Dynamics to Monitor

DHIL carries more volatility with a beta of 0.75 — expect wider price swings.

ACGL is growing revenue faster at -3.3% — sustainability is the question.

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

Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ACGL scores higher overall (79/100 vs 72/100), backed by strong 24.6% 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.

Diamond Hill Investment Group Inc

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Diamond Hill Investment Group, Inc., provides fund management and investment advisory services in the United States. The company is headquartered in Columbus, Ohio.

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