WallStSmart

Arch Capital Group Ltd. (ACGL)vsEssent Group Ltd (ESNT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 1354% more annual revenue ($19.23B vs $1.32B). ESNT leads profitability with a 51.4% profit margin vs 24.4%. ESNT appears more attractively valued with a PEG of 0.84. ESNT earns a higher WallStSmart Score of 73/100 (B).

ACGL

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

ESNT

Strong Buy

73

out of 100

Grade: B

Growth: 6.0Profit: 8.0Value: 7.7Quality: 6.5
Piotroski: 2/9Altman Z: 4.50

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
7.7x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

Free Cash FlowQuality
$1.31B8/10

Generating 1.3B in free cash flow

ESNT6 strengths · Avg: 10.0/10
P/E RatioValuation
9.6x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
51.4%10/10

Keeps 51 of every $100 in revenue as profit

Operating MarginProfitability
65.7%10/10

Strong operational efficiency at 65.7%

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.5010/10

Safe zone — low bankruptcy risk

Areas to Watch

ACGL3 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-10.5%2/10

Revenue declined 10.5%

EPS GrowthGrowth
-7.1%2/10

Earnings declined 7.1%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

ESNT1 concerns · Avg: 3.0/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

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 24.4% and operating margin at 26.6%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : ESNT

The strongest argument for ESNT centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 51.4% and operating margin at 65.7%. Revenue growth of 13.6% demonstrates continued momentum.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.

Bear Case : ESNT

The primary concerns for ESNT are Piotroski F-Score.

Key Dynamics to Monitor

ACGL profiles as a declining stock while ESNT is a mature play — different risk/reward profiles.

ESNT carries more volatility with a beta of 0.76 — expect wider price swings.

ESNT is growing revenue faster at 13.6% — sustainability is the question.

ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

ESNT scores higher overall (73/100 vs 67/100), backed by strong 51.4% margins and 13.6% revenue growth. Both earn "Strong 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.

Essent Group Ltd

FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA

Essent Group Ltd., provides private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. The company is headquartered in Hamilton, Bermuda.

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