WallStSmart

Arch Capital Group Ltd (ACGL)vsReinsurance Group of America (RGA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Reinsurance Group of America generates 19% more annual revenue ($23.70B vs $19.93B). ACGL leads profitability with a 22.1% profit margin vs 5.0%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

81

out of 100

Grade: A-

Growth: 8.7Profit: 8.0Value: 7.0Quality: 6.5
Piotroski: 5/9

RGA

Strong Buy

70

out of 100

Grade: B-

Growth: 8.7Profit: 5.0Value: 7.0Quality: 6.0
Piotroski: 4/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

EPS GrowthGrowth
38.8%8/10

Earnings expanding 38.8% YoY

RGA4 strengths · Avg: 9.5/10
P/E RatioValuation
11.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

EPS GrowthGrowth
216.6%10/10

Earnings expanding 216.6% YoY

Revenue GrowthGrowth
26.6%8/10

Revenue surging 26.6% year-over-year

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

RGA1 concerns · Avg: 3.0/10
Profit MarginProfitability
5.0%3/10

5.0% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull 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 : RGA

The strongest argument for RGA centers on P/E Ratio, Price/Book, EPS Growth. Revenue growth of 26.6% demonstrates continued momentum. PEG of 1.14 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

No major red flags identified for ACGL, but monitor valuation.

Bear Case : RGA

The primary concerns for RGA are Profit Margin. Thin 5.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

ACGL profiles as a mature stock while RGA is a growth play — different risk/reward profiles.

RGA carries more volatility with a beta of 0.52 — expect wider price swings.

RGA is growing revenue faster at 26.6% — 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 70/100), backed by strong 22.1% margins. Both earn "Exceptional Buy" and "Strong 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.

Reinsurance Group of America

FINANCIAL SERVICES · INSURANCE - REINSURANCE · USA

Reinsurance Group of America, Incorporated is in the reinsurance business. The company is headquartered in Chesterfield, Missouri.

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