Arch Capital Group Ltd (ACGL)vsNelnet Inc (NNI)
ACGL
Arch Capital Group Ltd
$94.46
+1.88%
FINANCIAL SERVICES · Cap: $34.58B
NNI
Nelnet Inc
$142.48
-1.21%
FINANCIAL SERVICES · Cap: $5.13B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd generates 1091% more annual revenue ($19.93B vs $1.67B). NNI leads profitability with a 25.6% profit margin vs 22.1%. NNI appears more attractively valued with a PEG of 0.46. ACGL earns a higher WallStSmart Score of 81/100 (A-).
ACGL
Exceptional Buy81
out of 100
Grade: A-
NNI
Buy58
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
Reasonable price relative to book value
Keeps 26 of every $100 in revenue as profit
Attractively priced relative to earnings
Areas to Watch
No major concerns identified
Revenue declined 8.6%
Earnings declined 7.6%
Distress zone — elevated risk
Elevated debt levels
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 : NNI
The strongest argument for NNI centers on PEG Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 25.6% and operating margin at 17.7%. PEG of 0.46 suggests the stock is reasonably priced for its growth.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : NNI
The primary concerns for NNI are Revenue Growth, EPS Growth, Altman Z-Score. Debt-to-equity of 2.14 is elevated, increasing financial risk.
Key Dynamics to Monitor
ACGL profiles as a mature stock while NNI is a declining play — different risk/reward profiles.
NNI carries more volatility with a beta of 0.81 — 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 58/100), 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.
Nelnet Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
Nelnet, Inc. is engaged in the loan management, communications and educational technology, services and payment processing businesses globally. The company is headquartered in Lincoln, Nebraska.
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