WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 171441% more annual revenue ($19.78B vs $11.53M). ACGL leads profitability with a 24.6% profit margin vs -72.1%. ACGL earns a higher WallStSmart Score of 79/100 (B+).

ACGL

Strong Buy

79

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

MEGL

Hold

37

out of 100

Grade: F

Growth: 4.7Profit: 2.0Value: 5.0Quality: 8.5
Piotroski: 2/9Altman Z: 16.59

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

Profit MarginProfitability
24.6%9/10

Keeps 25 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

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
16.5910/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
26.7%8/10

Revenue surging 26.7% year-over-year

Areas to Watch

ACGL2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

MEGL4 concerns · Avg: 2.5/10
Market CapQuality
$6.18M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-7.5%2/10

ROE of -7.5% — below average capital efficiency

EPS GrowthGrowth
-13.6%2/10

Earnings declined 13.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, EPS Growth. 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 : 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

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

Bear Case : MEGL

The primary concerns for MEGL are Market Cap, Piotroski F-Score, Return on Equity.

Key Dynamics to Monitor

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

MEGL carries more volatility with a beta of 2.43 — expect wider price swings.

MEGL is growing revenue faster at 26.7% — 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 37/100), backed by strong 24.6% 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.

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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