WallStSmart

Arch Capital Group Ltd. (ACGL)vsHeritage Insurance Hldgs Inc (HRTG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 2150% more annual revenue ($19.23B vs $854.63M). HRTG leads profitability with a 25.2% profit margin vs 24.4%. HRTG trades at a lower P/E of 4.8x. HRTG 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

HRTG

Strong Buy

72

out of 100

Grade: B

Growth: 6.7Profit: 9.0Value: 6.7Quality: 8.0
Piotroski: 6/9Altman Z: 1.02

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

HRTG6 strengths · Avg: 9.3/10
P/E RatioValuation
4.8x10/10

Attractively priced relative to earnings

Return on EquityProfitability
37.9%10/10

Every $100 of equity generates 38 in profit

Operating MarginProfitability
39.2%10/10

Strong operational efficiency at 39.2%

Profit MarginProfitability
25.2%9/10

Keeps 25 of every $100 in revenue as profit

Debt/EquityHealth
0.169/10

Conservative balance sheet, low leverage

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

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

HRTG3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
3.0%4/10

3.0% revenue growth

Market CapQuality
$1.02B3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
1.022/10

Distress zone — elevated risk

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 : HRTG

The strongest argument for HRTG centers on P/E Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 25.2% and operating margin at 39.2%.

Bear Case : ACGL

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

Bear Case : HRTG

The primary concerns for HRTG are Revenue Growth, Market Cap, Altman Z-Score.

Key Dynamics to Monitor

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

HRTG carries more volatility with a beta of 0.91 — expect wider price swings.

HRTG is growing revenue faster at 3.0% — sustainability is the question.

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

Bottom Line

HRTG scores higher overall (72/100 vs 67/100), backed by strong 25.2% margins. 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.

Heritage Insurance Hldgs Inc

FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA

Heritage Insurance Holdings, Inc. provides residential personal and commercial insurance products. The company is headquartered in Clearwater, Florida.

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