Arch Capital Group Ltd (ACGL)vsEllington Residential Mortgage (EARN)
ACGL
Arch Capital Group Ltd
$94.46
+1.88%
FINANCIAL SERVICES · Cap: $34.58B
EARN
Ellington Residential Mortgage
$4.72
+0.85%
FINANCIAL SERVICES · Cap: $175.07M
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd generates 55423% more annual revenue ($19.93B vs $35.89M). ACGL leads profitability with a 22.1% profit margin vs -14.6%. ACGL trades at a lower P/E of 8.4x. ACGL earns a higher WallStSmart Score of 81/100 (A-).
ACGL
Exceptional Buy81
out of 100
Grade: A-
EARN
Hold37
out of 100
Grade: F
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
Reasonable price relative to book value
Strong operational efficiency at 68.4%
Attractively priced relative to earnings
Areas to Watch
No major concerns identified
Smaller company, higher risk/reward
ROE of -2.8% — below average capital efficiency
Revenue declined 61.0%
Currently unprofitable
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 : EARN
The strongest argument for EARN centers on Price/Book, Operating Margin, P/E Ratio.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : EARN
The primary concerns for EARN are Market Cap, Return on Equity, Revenue Growth.
Key Dynamics to Monitor
ACGL profiles as a mature stock while EARN is a turnaround play — different risk/reward profiles.
EARN carries more volatility with a beta of 1.29 — expect wider price swings.
ACGL is growing revenue faster at 8.5% — sustainability is the question.
Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ACGL scores higher overall (81/100 vs 37/100), backed by strong 22.1% margins. Both earn "Exceptional 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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