Arch Capital Group Ltd. (ACGL)vsThe Hanover Insurance Group Inc (THG)
ACGL
Arch Capital Group Ltd.
$88.34
-0.17%
FINANCIAL SERVICES · Cap: $32.03B
THG
The Hanover Insurance Group Inc
$193.19
+3.32%
FINANCIAL SERVICES · Cap: $6.92B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 196% more annual revenue ($19.78B vs $6.69B). ACGL leads profitability with a 24.6% profit margin vs 10.8%. THG appears more attractively valued with a PEG of 0.34. ACGL earns a higher WallStSmart Score of 79/100 (B+).
ACGL
Strong Buy79
out of 100
Grade: B+
THG
Strong Buy76
out of 100
Grade: B+
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 20 in profit
Keeps 25 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
Every $100 of equity generates 20 in profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Earnings expanding 48.6% YoY
Areas to Watch
Revenue declined 3.3%
Distress zone — elevated risk
No major concerns identified
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 : THG
The strongest argument for THG centers on PEG Ratio, P/E Ratio, Return on Equity. PEG of 0.34 suggests the stock is reasonably priced for its growth.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, Altman Z-Score.
Bear Case : THG
No major red flags identified for THG, but monitor valuation.
Key Dynamics to Monitor
ACGL profiles as a declining stock while THG is a value play — different risk/reward profiles.
THG carries more volatility with a beta of 0.32 — expect wider price swings.
THG is growing revenue faster at 6.1% — 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 76/100), 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.
The Hanover Insurance Group Inc
FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA
Hanover Insurance Group, Inc. offers a variety of property and casualty insurance products and services in the United States. The company is headquartered in Worcester, Massachusetts.
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