Arch Capital Group Ltd (ACGL)vsNorthrop Grumman Corporation (NOC)
ACGL
Arch Capital Group Ltd
$93.32
-0.30%
FINANCIAL SERVICES · Cap: $33.94B
NOC
Northrop Grumman Corporation
$691.21
+1.33%
INDUSTRIALS · Cap: $97.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Northrop Grumman Corporation generates 111% more annual revenue ($41.95B vs $19.93B). ACGL leads profitability with a 22.1% profit margin vs 10.0%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 81/100 (A-).
ACGL
Exceptional Buy81
out of 100
Grade: A-
NOC
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+81.8%
Fair Value
$542.88
Current Price
$93.32
$449.56 discount
Margin of Safety
+24.9%
Fair Value
$904.35
Current Price
$691.21
$213.14 discount
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
Large-cap with strong market position
Every $100 of equity generates 26 in profit
Generating 3.2B in free cash flow
Areas to Watch
No major concerns identified
Grey zone — moderate risk
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
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 : NOC
The strongest argument for NOC centers on Market Cap, Return on Equity, Free Cash Flow.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : NOC
The primary concerns for NOC are Altman Z-Score, Debt/Equity, Piotroski F-Score.
Key Dynamics to Monitor
ACGL profiles as a mature stock while NOC is a value play — different risk/reward profiles.
ACGL carries more volatility with a beta of 0.36 — expect wider price swings.
NOC is growing revenue faster at 9.6% — sustainability is the question.
NOC generates stronger free cash flow (3.2B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (81/100 vs 56/100), backed by strong 22.1% margins. NOC offers better value entry with a 24.9% margin of safety. 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.
Northrop Grumman Corporation
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Northrop Grumman Corporation (NYSE: NOC) is an American multinational aerospace and defense technology company.
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