Arch Capital Group Ltd. (ACGL)vsGoosehead Insurance Inc (GSHD)
ACGL
Arch Capital Group Ltd.
$98.48
-0.82%
FINANCIAL SERVICES · Cap: $34.28B
GSHD
Goosehead Insurance Inc
$65.20
-2.19%
FINANCIAL SERVICES · Cap: $2.94B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 4688% more annual revenue ($19.23B vs $401.64M). ACGL leads profitability with a 24.4% profit margin vs 8.8%. ACGL trades at a lower P/E of 7.9x. ACGL earns a higher WallStSmart Score of 67/100 (B-).
ACGL
Strong Buy67
out of 100
Grade: B-
GSHD
Buy60
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Every $100 of equity generates 20 in profit
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 26.6%
Every $100 of equity generates 176 in profit
Earnings expanding 122.2% YoY
Conservative balance sheet, low leverage
Strong operational efficiency at 23.4%
Revenue surging 20.7% year-over-year
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Premium valuation, high expectations priced in
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ACGL
The strongest argument for ACGL centers on P/E Ratio, Price/Book, Return on Equity. 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 : GSHD
The strongest argument for GSHD centers on Return on Equity, EPS Growth, Debt/Equity. Revenue growth of 20.7% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : GSHD
The primary concerns for GSHD are P/E Ratio, Altman Z-Score. A P/E of 45.3x leaves little room for execution misses.
Key Dynamics to Monitor
ACGL profiles as a declining stock while GSHD is a growth play — different risk/reward profiles.
GSHD carries more volatility with a beta of 1.40 — expect wider price swings.
GSHD is growing revenue faster at 20.7% — sustainability is the question.
ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (67/100 vs 60/100), backed by strong 24.4% margins. Both earn "Strong 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.
Goosehead Insurance Inc
FINANCIAL SERVICES · INSURANCE BROKERS · USA
Goosehead Insurance, Inc. is a portfolio company of Goosehead Financial, LLC providing personal lines insurance agency services in the United States. The company is headquartered in Westlake, Texas.
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