WallStSmart

Arch Capital Group Ltd. (ACGL)vsHennessy Ad (HNNA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 57579% more annual revenue ($19.23B vs $33.34M). HNNA leads profitability with a 24.8% profit margin vs 24.4%. HNNA appears more attractively valued with a PEG of 0.71. ACGL earns a higher WallStSmart Score of 67/100 (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

HNNA

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 7.5Value: 7.7Quality: 8.5
Piotroski: 4/9Altman Z: 2.60

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

HNNA6 strengths · Avg: 9.5/10
P/E RatioValuation
9.8x10/10

Attractively priced relative to earnings

Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Operating MarginProfitability
34.7%10/10

Strong operational efficiency at 34.7%

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Profit MarginProfitability
24.8%9/10

Keeps 25 of every $100 in revenue as profit

PEG RatioValuation
0.718/10

Growing faster than its price suggests

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

HNNA3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

Market CapQuality
$80.90M3/10

Smaller company, higher risk/reward

EPS GrowthGrowth
-3.8%2/10

Earnings declined 3.8%

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 : HNNA

The strongest argument for HNNA centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 24.8% and operating margin at 34.7%. PEG of 0.71 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

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

Bear Case : HNNA

The primary concerns for HNNA are Revenue Growth, Market Cap, EPS Growth.

Key Dynamics to Monitor

ACGL profiles as a declining stock while HNNA is a value play — different risk/reward profiles.

HNNA carries more volatility with a beta of 0.56 — expect wider price swings.

HNNA is growing revenue faster at 4.2% — sustainability is the question.

ACGL generates stronger free cash flow (1.3B), 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.

Hennessy Ad

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Hennessy Advisors, Inc. is a publicly owned investment manager. The company is headquartered in Novato, California with additional offices in Boston, Massachusetts and Chapel Hill, North Carolina.

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