Arch Capital Group Ltd (ACGL)vsEncore Capital Group Inc (ECPG)
ACGL
Arch Capital Group Ltd
$94.46
+1.88%
FINANCIAL SERVICES · Cap: $34.58B
ECPG
Encore Capital Group Inc
$82.77
+1.03%
FINANCIAL SERVICES · Cap: $1.75B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd generates 1027% more annual revenue ($19.93B vs $1.77B). ACGL leads profitability with a 22.1% profit margin vs 14.5%. ECPG appears more attractively valued with a PEG of 0.17. ECPG earns a higher WallStSmart Score of 90/100 (A).
ACGL
Exceptional Buy81
out of 100
Grade: A-
ECPG
Exceptional Buy90
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 22 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 29.5%
Earnings expanding 38.8% YoY
Growing faster than its price suggests
Attractively priced relative to earnings
Strong operational efficiency at 36.6%
Revenue surging 78.3% year-over-year
Earnings expanding 151.6% YoY
Every $100 of equity generates 29 in profit
Areas to Watch
No major concerns identified
Smaller company, higher risk/reward
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 : ECPG
The strongest argument for ECPG centers on PEG Ratio, P/E Ratio, Operating Margin. Revenue growth of 78.3% demonstrates continued momentum. PEG of 0.17 suggests the stock is reasonably priced for its growth.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : ECPG
The primary concerns for ECPG are Market Cap.
Key Dynamics to Monitor
ACGL profiles as a mature stock while ECPG is a growth play — different risk/reward profiles.
ECPG carries more volatility with a beta of 1.27 — expect wider price swings.
ECPG is growing revenue faster at 78.3% — sustainability is the question.
ACGL generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
ECPG scores higher overall (90/100 vs 81/100) and 78.3% revenue growth. Both earn "Exceptional Buy" and "Exceptional 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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