WallStSmart

Arch Capital Group Ltd. (ACGL)vsHut 8 Corp. Common Stock (HUT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 5949% more annual revenue ($19.23B vs $317.95M). ACGL leads profitability with a 24.4% profit margin vs -188.6%. 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

HUT

Hold

39

out of 100

Grade: F

Growth: 7.3Profit: 2.0Value: 5.0Quality: 4.5
Piotroski: 2/9Altman Z: 0.65

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

HUT2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
81.4%10/10

Revenue surging 81.4% year-over-year

EPS GrowthGrowth
6007.0%10/10

Earnings expanding 6007.0% 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

HUT4 concerns · Avg: 2.8/10
Price/BookValuation
8.4x4/10

Trading at 8.4x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-41.6%2/10

ROE of -41.6% — below average capital efficiency

Free Cash FlowQuality
$-523.87M2/10

Negative free cash flow — burning cash

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 : HUT

The strongest argument for HUT centers on Revenue Growth, EPS Growth. Revenue growth of 81.4% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : HUT

The primary concerns for HUT are Price/Book, Piotroski F-Score, Return on Equity. Debt-to-equity of 5.32 is elevated, increasing financial risk.

Key Dynamics to Monitor

ACGL profiles as a declining stock while HUT is a hypergrowth play — different risk/reward profiles.

HUT carries more volatility with a beta of 5.98 — expect wider price swings.

HUT is growing revenue faster at 81.4% — 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 39/100), backed by strong 24.4% margins. Both earn "Strong Buy" and "Hold" 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.

Hut 8 Corp. Common Stock

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Hut 8 Corp. is a premier cryptocurrency and blockchain infrastructure provider based in Canada, recognized as one of North America’s largest publicly traded Bitcoin miners. The company is committed to sustainable energy practices, operating extensive data centers that cater to both institutional and retail clients. By leveraging cutting-edge technology and adapting to the dynamic market landscape, Hut 8 is well-equipped to satisfy the growing institutional demand for cryptocurrency solutions, positioning itself as a leader in the sector.

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