WallStSmart

Arch Capital Group Ltd. (ACGL)vsMBIA Inc (MBI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 21755% more annual revenue ($19.23B vs $88.00M). ACGL leads profitability with a 24.4% profit margin vs -164.8%. ACGL appears more attractively valued with a PEG of 1.06. 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

MBI

Hold

38

out of 100

Grade: F

Growth: 2.7Profit: 4.5Value: 4.7Quality: 7.8
Piotroski: 4/9

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

MBI2 strengths · Avg: 9.0/10
Debt/EquityHealth
-1.2510/10

Conservative balance sheet, low leverage

Operating MarginProfitability
22.2%8/10

Strong operational efficiency at 22.2%

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

MBI4 concerns · Avg: 3.5/10
PEG RatioValuation
1.714/10

Expensive relative to growth rate

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$244.37M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

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 : MBI

The strongest argument for MBI centers on Debt/Equity, Operating Margin.

Bear Case : ACGL

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

Bear Case : MBI

The primary concerns for MBI are PEG Ratio, EPS Growth, Market Cap.

Key Dynamics to Monitor

ACGL profiles as a declining stock while MBI is a turnaround play — different risk/reward profiles.

MBI carries more volatility with a beta of 1.34 — expect wider price swings.

ACGL is growing revenue faster at -10.5% — 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 38/100), 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.

MBIA Inc

FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA

MBIA Inc. provides financial insurance services to the public financial markets. The company is headquartered in Purchase, New York.

Want to dig deeper into these stocks?