WallStSmart

Arch Capital Group Ltd. (ACGL)vsRobinhood Markets Inc (HOOD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 290% more annual revenue ($19.23B vs $4.93B). HOOD leads profitability with a 42.0% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. HOOD earns a higher WallStSmart Score of 72/100 (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

HOOD

Strong Buy

72

out of 100

Grade: B

Growth: 10.0Profit: 8.5Value: 4.3Quality: 4.0
Piotroski: 3/9Altman Z: 0.65

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
7.9x10/10

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

HOOD6 strengths · Avg: 9.3/10
Profit MarginProfitability
42.0%10/10

Keeps 42 of every $100 in revenue as profit

Operating MarginProfitability
43.9%10/10

Strong operational efficiency at 43.9%

Revenue GrowthGrowth
32.3%10/10

Revenue surging 32.3% year-over-year

Market CapQuality
$93.74B9/10

Large-cap with strong market position

Return on EquityProfitability
21.9%9/10

Every $100 of equity generates 22 in profit

EPS GrowthGrowth
47.6%8/10

Earnings expanding 47.6% YoY

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

HOOD4 concerns · Avg: 3.3/10
PEG RatioValuation
2.494/10

Expensive relative to growth rate

Price/BookValuation
9.9x4/10

Trading at 9.9x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
48.5x2/10

Premium valuation, high expectations priced in

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 : HOOD

The strongest argument for HOOD centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 42.0% and operating margin at 43.9%. Revenue growth of 32.3% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : HOOD

The primary concerns for HOOD are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 48.5x leaves little room for execution misses. Debt-to-equity of 2.92 is elevated, increasing financial risk.

Key Dynamics to Monitor

ACGL profiles as a declining stock while HOOD is a growth play — different risk/reward profiles.

HOOD carries more volatility with a beta of 2.32 — expect wider price swings.

HOOD is growing revenue faster at 32.3% — sustainability is the question.

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

Bottom Line

HOOD scores higher overall (72/100 vs 67/100), backed by strong 42.0% margins and 32.3% 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.

Robinhood Markets Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Robinhood Markets Inc (HOOD) is a leading fintech company revolutionizing retail investing since 2013 with its innovative, commission-free trading platform. By offering a diverse range of investment products—including stocks, ETFs, options, and cryptocurrencies—Robinhood caters to a broad demographic, particularly engaging younger investors. The company is committed to financial education and inclusivity, further solidified by its unique features like fractional shares and advanced cash management solutions. With a focus on transparency and efficiency, Robinhood is well-positioned as a key player in the evolving digital brokerage landscape.

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