Arch Capital Group Ltd. (ACGL)vsEncore Capital Group Inc (ECPG)
ACGL
Arch Capital Group Ltd.
$96.09
-0.11%
FINANCIAL SERVICES · Cap: $33.47B
ECPG
Encore Capital Group Inc
$98.56
+0.63%
FINANCIAL SERVICES · Cap: $2.06B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 912% more annual revenue ($19.23B vs $1.90B). ACGL leads profitability with a 24.4% profit margin vs 15.9%. ECPG appears more attractively valued with a PEG of 0.17. ECPG earns a higher WallStSmart Score of 83/100 (A-).
ACGL
Strong Buy67
out of 100
Grade: B-
ECPG
Exceptional Buy83
out of 100
Grade: A-
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
Growing faster than its price suggests
Attractively priced relative to earnings
Strong operational efficiency at 38.0%
Every $100 of equity generates 29 in profit
Reasonable price relative to book value
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Negative free cash flow — burning cash
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 24.4% and operating margin at 26.6%. PEG of 1.06 suggests the stock is reasonably priced for its growth.
Bull Case : ECPG
The strongest argument for ECPG centers on PEG Ratio, P/E Ratio, Operating Margin. Profitability is solid with margins at 15.9% and operating margin at 38.0%. Revenue growth of 11.3% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : ECPG
The primary concerns for ECPG are Free Cash Flow, Altman Z-Score, Debt/Equity. Debt-to-equity of 4.52 is elevated, increasing financial risk.
Key Dynamics to Monitor
ACGL profiles as a declining stock while ECPG is a mature play — different risk/reward profiles.
ECPG carries more volatility with a beta of 1.28 — expect wider price swings.
ECPG is growing revenue faster at 11.3% — sustainability is the question.
ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
ECPG scores higher overall (83/100 vs 67/100), backed by strong 15.9% margins and 11.3% revenue growth. Both earn "Exceptional 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.
Encore Capital Group Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
Encore Capital Group, Inc., a specialty finance company, offers debt recovery solutions and other related services to consumers in a variety of financial assets worldwide. The company is headquartered in San Diego, California.
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