Arch Capital Group Ltd (ACGL)vsRoot Inc (ROOT)
ACGL
Arch Capital Group Ltd
$94.70
+0.59%
FINANCIAL SERVICES · Cap: $33.14B
ROOT
Root Inc
$55.05
+0.27%
FINANCIAL SERVICES · Cap: $871.01M
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd generates 1204% more annual revenue ($19.78B vs $1.52B). ACGL leads profitability with a 24.6% profit margin vs 2.5%. ACGL trades at a lower P/E of 7.2x. ACGL earns a higher WallStSmart Score of 79/100 (B+).
ACGL
Strong Buy79
out of 100
Grade: B+
ROOT
Hold43
out of 100
Grade: D
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 94.6% YoY
Every $100 of equity generates 21 in profit
Keeps 25 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Revenue surging 21.5% year-over-year
Areas to Watch
Revenue declined 3.3%
Smaller company, higher risk/reward
2.5% margin — thin
Operating margin of 2.6%
Earnings declined 76.4%
Comparative Analysis Report
WallStSmart ResearchBull 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 : ROOT
The strongest argument for ROOT centers on Revenue Growth. Revenue growth of 21.5% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth.
Bear Case : ROOT
The primary concerns for ROOT are Market Cap, Profit Margin, Operating Margin. Thin 2.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
ACGL profiles as a declining stock while ROOT is a growth play — different risk/reward profiles.
ROOT carries more volatility with a beta of 2.95 — expect wider price swings.
ROOT is growing revenue faster at 21.5% — 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 43/100), backed by strong 24.6% margins. Both earn "Strong Buy" and "Hold" 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.
Root Inc
FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA
Root, Inc. offers insurance products and services in the United States. The company is headquartered in Columbus, Ohio.
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