Arch Capital Group Ltd. (ACGL)vsMercury General Corporation (MCY)
ACGL
Arch Capital Group Ltd.
$101.14
-3.26%
FINANCIAL SERVICES · Cap: $35.41B
MCY
Mercury General Corporation
$108.37
-1.04%
FINANCIAL SERVICES · Cap: $5.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 222% more annual revenue ($19.78B vs $6.14B). ACGL leads profitability with a 24.6% profit margin vs 13.7%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 79/100 (B+).
ACGL
Strong Buy79
out of 100
Grade: B+
MCY
Strong Buy76
out of 100
Grade: B+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Earnings expanding 94.6% YoY
Every $100 of equity generates 20 in profit
Keeps 25 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Attractively priced relative to earnings
Every $100 of equity generates 32 in profit
Earnings expanding 100.9% YoY
Conservative balance sheet, low leverage
Reasonable price relative to book value
Areas to Watch
Revenue declined 3.3%
Distress zone — elevated risk
Weak financial health signals
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ACGL
The strongest argument for ACGL centers on P/E Ratio, EPS Growth, Return on Equity. Profitability is solid with margins at 24.6% and operating margin at 25.3%. PEG of 1.06 suggests the stock is reasonably priced for its growth.
Bull Case : MCY
The strongest argument for MCY centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 10.5% demonstrates continued momentum. PEG of 1.12 suggests the stock is reasonably priced for its growth.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, Altman Z-Score.
Bear Case : MCY
The primary concerns for MCY are Piotroski F-Score, Altman Z-Score.
Key Dynamics to Monitor
ACGL profiles as a declining stock while MCY is a value play — different risk/reward profiles.
MCY carries more volatility with a beta of 0.91 — expect wider price swings.
MCY is growing revenue faster at 10.5% — sustainability is the question.
ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (79/100 vs 76/100), backed by strong 24.6% 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.
Mercury General Corporation
FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA
Mercury General Corporation engages in underwriting personal auto insurance in the United States. The company is headquartered in Los Angeles, California.
Compare with Other INSURANCE - DIVERSIFIED Stocks
Want to dig deeper into these stocks?