WallStSmart

Arch Capital Group Ltd (ACGL)vsErie Indemnity Company (ERIE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 387% more annual revenue ($19.93B vs $4.09B). ACGL leads profitability with a 22.1% profit margin vs 14.0%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

81

out of 100

Grade: A-

Growth: 8.7Profit: 8.0Value: 7.0Quality: 6.5
Piotroski: 5/9

ERIE

Buy

53

out of 100

Grade: C-

Growth: 6.0Profit: 8.0Value: 4.3Quality: 6.3
Piotroski: 2/9Altman Z: 5.22

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

EPS GrowthGrowth
38.8%8/10

Earnings expanding 38.8% YoY

ERIE2 strengths · Avg: 9.5/10
Altman Z-ScoreHealth
5.2210/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
25.9%9/10

Every $100 of equity generates 26 in profit

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

ERIE3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.3%4/10

2.3% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.672/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull 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 : ERIE

The strongest argument for ERIE centers on Altman Z-Score, Return on Equity.

Bear Case : ACGL

No major red flags identified for ACGL, but monitor valuation.

Bear Case : ERIE

The primary concerns for ERIE are Revenue Growth, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

ACGL profiles as a mature stock while ERIE is a value play — different risk/reward profiles.

ERIE carries more volatility with a beta of 0.44 — expect wider price swings.

ACGL is growing revenue faster at 8.5% — sustainability is the question.

ACGL generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (81/100 vs 53/100), backed by strong 22.1% margins. Both earn "Exceptional Buy" and "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.

Erie Indemnity Company

FINANCIAL SERVICES · INSURANCE BROKERS · USA

Erie Indemnity Company is an administrative agent for underwriters on the Erie Insurance Exchange in the United States. The company is headquartered in Erie, Pennsylvania.

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