Arch Capital Group Ltd (ACGL)vsMGIC Investment Corp (MTG)
ACGL
Arch Capital Group Ltd
$94.46
+1.88%
FINANCIAL SERVICES · Cap: $34.58B
MTG
MGIC Investment Corp
$29.13
+0.52%
FINANCIAL SERVICES · Cap: $6.31B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd generates 1542% more annual revenue ($19.93B vs $1.21B). MTG leads profitability with a 60.8% profit margin vs 22.1%. MTG appears more attractively valued with a PEG of 0.40. ACGL earns a higher WallStSmart Score of 81/100 (A-).
ACGL
Exceptional Buy81
out of 100
Grade: A-
MTG
Buy65
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 22 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 29.5%
Earnings expanding 38.8% YoY
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 61 of every $100 in revenue as profit
Strong operational efficiency at 74.2%
Areas to Watch
No major concerns identified
3.9% earnings growth
Weak financial health signals
Revenue declined 0.9%
Comparative Analysis Report
WallStSmart ResearchBull 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 : MTG
The strongest argument for MTG centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 60.8% and operating margin at 74.2%. PEG of 0.40 suggests the stock is reasonably priced for its growth.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : MTG
The primary concerns for MTG are EPS Growth, Piotroski F-Score, Revenue Growth.
Key Dynamics to Monitor
ACGL profiles as a mature stock while MTG is a declining play — different risk/reward profiles.
MTG carries more volatility with a beta of 0.79 — expect wider price swings.
ACGL is growing revenue faster at 8.5% — 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 65/100), backed by strong 22.1% margins. Both earn "Exceptional Buy" and "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.
MGIC Investment Corp
FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA
MGIC Investment Corporation offers private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government-sponsored entities in the United States, Puerto Rico, and Guam. The company is headquartered in Milwaukee, Wisconsin.
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