Arch Capital Group Ltd. (ACGL)vsEllington Residential Mortgage (EARN)
ACGL
Arch Capital Group Ltd.
$97.95
+1.94%
FINANCIAL SERVICES · Cap: $33.47B
EARN
Ellington Residential Mortgage
$4.32
+0.35%
FINANCIAL SERVICES · Cap: $162.30M
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 46136% more annual revenue ($19.23B vs $41.59M). ACGL leads profitability with a 24.4% profit margin vs -81.2%. ACGL trades at a lower P/E of 7.7x. ACGL earns a higher WallStSmart Score of 67/100 (B-).
ACGL
Strong Buy67
out of 100
Grade: B-
EARN
Hold44
out of 100
Grade: D
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
Reasonable price relative to book value
Strong operational efficiency at 68.0%
Earnings expanding 69.8% YoY
Attractively priced relative to earnings
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Smaller company, higher risk/reward
Elevated debt levels
ROE of -2.8% — below average capital efficiency
Revenue declined 19.3%
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 : EARN
The strongest argument for EARN centers on Price/Book, Operating Margin, EPS Growth.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : EARN
The primary concerns for EARN are Market Cap, Debt/Equity, Return on Equity.
Key Dynamics to Monitor
ACGL profiles as a declining stock while EARN is a turnaround play — different risk/reward profiles.
EARN carries more volatility with a beta of 1.27 — expect wider price swings.
ACGL is growing revenue faster at -10.5% — sustainability is the question.
Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ACGL scores higher overall (67/100 vs 44/100), backed by strong 24.4% margins. Both earn "Strong Buy" and "Hold" 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.
Ellington Residential Mortgage
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
Ellington Residential Mortgage REIT, a real estate investment trust, specializes in acquiring, investing, and managing residential and real estate-related mortgage assets. The company is headquartered in Old Greenwich, Connecticut.
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