Arch Capital Group Ltd. (ACGL)vsRoot Inc (ROOT)
ACGL
Arch Capital Group Ltd.
$99.09
-0.43%
FINANCIAL SERVICES · Cap: $34.28B
ROOT
Root Inc
$59.12
+3.59%
FINANCIAL SERVICES · Cap: $903.21M
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 1132% more annual revenue ($19.23B vs $1.56B). ACGL leads profitability with a 24.4% profit margin vs 3.5%. ACGL trades at a lower P/E of 7.9x. ACGL earns a higher WallStSmart Score of 67/100 (B-).
ACGL
Strong Buy67
out of 100
Grade: B-
ROOT
Buy57
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
Every $100 of equity generates 20 in profit
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 26.6%
Earnings expanding 95.3% YoY
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Smaller company, higher risk/reward
3.5% margin — thin
Weak financial health signals
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ACGL
The strongest argument for ACGL centers on P/E Ratio, Price/Book, Return on Equity. Profitability is solid with margins at 24.4% and operating margin at 26.6%. PEG of 1.06 suggests the stock is reasonably priced for its growth.
Bull Case : ROOT
The strongest argument for ROOT centers on EPS Growth, P/E Ratio, Price/Book. Revenue growth of 12.6% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : ROOT
The primary concerns for ROOT are Market Cap, Profit Margin, Piotroski F-Score. Thin 3.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
ACGL profiles as a declining stock while ROOT is a value play — different risk/reward profiles.
ROOT carries more volatility with a beta of 2.93 — expect wider price swings.
ROOT is growing revenue faster at 12.6% — sustainability is the question.
ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (67/100 vs 57/100), backed by strong 24.4% 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.
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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