WallStSmart

Arch Capital Group Ltd (ACGL)vsMagic Empire Global Limited (MEGL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 172760% more annual revenue ($19.93B vs $11.53M). ACGL leads profitability with a 22.1% profit margin vs -72.1%. ACGL earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

81

out of 100

Grade: A-

Growth: 8.7Profit: 8.0Value: 7.0Quality: 6.5
Piotroski: 5/9

MEGL

Hold

37

out of 100

Grade: F

Growth: 4.7Profit: 2.0Value: 5.0Quality: 9.0
Piotroski: 4/9Altman Z: 12.59

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

EPS GrowthGrowth
38.8%8/10

Earnings expanding 38.8% YoY

MEGL4 strengths · Avg: 9.5/10
Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
12.5910/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
26.7%8/10

Revenue surging 26.7% year-over-year

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

MEGL4 concerns · Avg: 2.3/10
Market CapQuality
$6.03M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-6.6%2/10

ROE of -6.6% — below average capital efficiency

EPS GrowthGrowth
-13.6%2/10

Earnings declined 13.6%

Free Cash FlowQuality
$-6.78M2/10

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 22.1% and operating margin at 29.5%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : MEGL

The strongest argument for MEGL centers on Price/Book, Debt/Equity, Altman Z-Score. Revenue growth of 26.7% demonstrates continued momentum.

Bear Case : ACGL

No major red flags identified for ACGL, but monitor valuation.

Bear Case : MEGL

The primary concerns for MEGL are Market Cap, Return on Equity, EPS Growth.

Key Dynamics to Monitor

ACGL profiles as a mature stock while MEGL is a growth play — different risk/reward profiles.

MEGL carries more volatility with a beta of 2.57 — expect wider price swings.

MEGL is growing revenue faster at 26.7% — sustainability is the question.

ACGL generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (81/100 vs 37/100), backed by strong 22.1% margins. Both earn "Exceptional 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.

Magic Empire Global Limited

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Magic Empire Global Limited provides IPO sponsorship, financial and independent financial advice, post-listing compliance advice and underwriting services to corporations in Hong Kong. The company is headquartered in Central, Hong Kong.

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