WallStSmart

Arch Capital Group Ltd. (ACGL)vsSprott Inc. (SII)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 5041% more annual revenue ($19.78B vs $384.67M). ACGL leads profitability with a 24.6% profit margin vs 22.0%. ACGL trades at a lower P/E of 7.0x. 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: 6.0
Piotroski: 6/9Altman Z: 1.48

SII

Strong Buy

67

out of 100

Grade: B-

Growth: 10.0Profit: 9.0Value: 4.7Quality: 6.8
Piotroski: 5/9Altman Z: 2.62

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.0x10/10

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
20.1%9/10

Every $100 of equity generates 20 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

SII5 strengths · Avg: 9.2/10
Revenue GrowthGrowth
229.7%10/10

Revenue surging 229.7% year-over-year

EPS GrowthGrowth
145.7%10/10

Earnings expanding 145.7% YoY

Return on EquityProfitability
22.9%9/10

Every $100 of equity generates 23 in profit

Profit MarginProfitability
22.0%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
29.4%8/10

Strong operational efficiency at 29.4%

Areas to Watch

ACGL2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

SII2 concerns · Avg: 4.0/10
P/E RatioValuation
36.2x4/10

Premium valuation, high expectations priced in

Price/BookValuation
8.0x4/10

Trading at 8.0x book value

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 : SII

The strongest argument for SII centers on Revenue Growth, EPS Growth, Return on Equity. Profitability is solid with margins at 22.0% and operating margin at 29.4%. Revenue growth of 229.7% demonstrates continued momentum.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth, Altman Z-Score.

Bear Case : SII

The primary concerns for SII are P/E Ratio, Price/Book.

Key Dynamics to Monitor

ACGL profiles as a declining stock while SII is a growth play — different risk/reward profiles.

SII carries more volatility with a beta of 1.30 — expect wider price swings.

SII is growing revenue faster at 229.7% — 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 67/100), backed by strong 24.6% margins. Both earn "Strong 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.

Sprott Inc.

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Sprott Inc. is a publicly owned asset management portfolio company. The company is headquartered in Toronto, Canada.

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