Arch Capital Group Ltd. (ACGL)vsSynopsys Inc (SNPS)
ACGL
Arch Capital Group Ltd.
$93.80
-0.76%
FINANCIAL SERVICES · Cap: $33.09B
SNPS
Synopsys Inc
$516.48
+2.23%
TECHNOLOGY · Cap: $98.94B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 147% more annual revenue ($19.78B vs $8.01B). ACGL leads profitability with a 24.6% profit margin vs 13.8%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 79/100 (B+).
ACGL
Strong Buy79
out of 100
Grade: B+
SNPS
Hold47
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 65.5% year-over-year
Large-cap with strong market position
Areas to Watch
Revenue declined 3.3%
ROE of 5.5% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 : SNPS
The strongest argument for SNPS centers on Revenue Growth, Market Cap. Revenue growth of 65.5% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth.
Bear Case : SNPS
The primary concerns for SNPS are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 79.2x leaves little room for execution misses.
Key Dynamics to Monitor
ACGL profiles as a declining stock while SNPS is a growth play — different risk/reward profiles.
SNPS carries more volatility with a beta of 1.25 — expect wider price swings.
SNPS is growing revenue faster at 65.5% — 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 47/100), 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.
Synopsys Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Synopsys is an American electronic design automation company that focuses on silicon design and verification, silicon intellectual property and software security and quality. Products include logic synthesis, behavioral synthesis, place and route, static timing analysis, formal verification, hardware description language (SystemC, SystemVerilog/Verilog, VHDL) simulators, and transistor-level circuit simulation.
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