WallStSmart

Arch Capital Group Ltd (ACGL)vsProAssurance Corporation (PRA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 1683% more annual revenue ($19.78B vs $1.11B). ACGL leads profitability with a 24.6% profit margin vs 4.6%. PRA appears more attractively valued with a PEG of 0.78. 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: 6.5
Piotroski: 5/9

PRA

Buy

65

out of 100

Grade: C+

Growth: 4.7Profit: 5.0Value: 6.3Quality: 5.0

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 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

PRA4 strengths · Avg: 9.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

EPS GrowthGrowth
105.2%10/10

Earnings expanding 105.2% YoY

PEG RatioValuation
0.788/10

Growing faster than its price suggests

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

Areas to Watch

ACGL1 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

PRA4 concerns · Avg: 2.8/10
Market CapQuality
$1.27B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
4.0%3/10

ROE of 4.0% — below average capital efficiency

Profit MarginProfitability
4.6%3/10

4.6% margin — thin

Revenue GrowthGrowth
-4.1%2/10

Revenue declined 4.1%

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 : PRA

The strongest argument for PRA centers on Price/Book, EPS Growth, PEG Ratio. PEG of 0.78 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth.

Bear Case : PRA

The primary concerns for PRA are Market Cap, Return on Equity, Profit Margin. Thin 4.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

ACGL profiles as a declining stock while PRA is a value play — different risk/reward profiles.

ACGL carries more volatility with a beta of 0.38 — expect wider price swings.

ACGL is growing revenue faster at -3.3% — 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 65/100), backed by strong 24.6% margins. Both earn "Strong 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.

ProAssurance Corporation

FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA

ProAssurance Corporation, offers property and casualty insurance and reinsurance products in the United States. The company is headquartered in Birmingham, Alabama.

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