Arch Capital Group Ltd (ACGL)vsGlaxoSmithKline PLC ADR (GSK)
ACGL
Arch Capital Group Ltd
$93.32
-0.30%
FINANCIAL SERVICES · Cap: $33.94B
GSK
GlaxoSmithKline PLC ADR
$54.71
+3.32%
HEALTHCARE · Cap: $104.12B
Smart Verdict
WallStSmart Research — data-driven comparison
GlaxoSmithKline PLC ADR generates 64% more annual revenue ($32.67B vs $19.93B). ACGL leads profitability with a 22.1% profit margin vs 17.5%. GSK appears more attractively valued with a PEG of 0.50. ACGL earns a higher WallStSmart Score of 81/100 (A-).
ACGL
Exceptional Buy81
out of 100
Grade: A-
GSK
Strong Buy70
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+81.8%
Fair Value
$542.88
Current Price
$93.32
$449.56 discount
Margin of Safety
+66.0%
Fair Value
$172.22
Current Price
$54.71
$117.51 discount
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
Every $100 of equity generates 43 in profit
Earnings expanding 54.7% YoY
Large-cap with strong market position
Attractively priced relative to earnings
Generating 1.5B in free cash flow
Areas to Watch
No major concerns identified
Trading at 10.1x book value
Elevated debt levels
Distress zone — elevated risk
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 : GSK
The strongest argument for GSK centers on PEG Ratio, Return on Equity, EPS Growth. Profitability is solid with margins at 17.5% and operating margin at 18.9%. PEG of 0.50 suggests the stock is reasonably priced for its growth.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : GSK
The primary concerns for GSK are Price/Book, Debt/Equity, Altman Z-Score.
Key Dynamics to Monitor
ACGL carries more volatility with a beta of 0.36 — expect wider price swings.
ACGL is growing revenue faster at 8.5% — sustainability is the question.
GSK generates stronger free cash flow (1.5B), providing more financial flexibility.
Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ACGL scores higher overall (81/100 vs 70/100), backed by strong 22.1% margins. GSK offers better value entry with a 66.0% margin of safety. 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.
GlaxoSmithKline PLC ADR
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
GlaxoSmithKline plc is dedicated to the creation, discovery, development, manufacture and marketing of pharmaceuticals, vaccines, over-the-counter drugs and health-related consumer products in the UK, US and internationally. The company is headquartered in Brentford, the United Kingdom.
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