WallStSmart

Arch Capital Group Ltd (ACGL)vsTPG Inc (TPG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 327% more annual revenue ($19.93B vs $4.67B). ACGL leads profitability with a 22.1% profit margin vs 4.0%. ACGL trades at a lower P/E of 8.4x. ACGL earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

81

out of 100

Grade: A-

Growth: 8.7Profit: 8.0Value: 7.0Quality: 6.5
Piotroski: 5/9

TPG

Buy

53

out of 100

Grade: C-

Growth: 8.0Profit: 6.5Value: 4.0Quality: 6.3
Piotroski: 5/9Altman Z: 1.09

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

EPS GrowthGrowth
38.8%8/10

Earnings expanding 38.8% YoY

TPG2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
38.5%10/10

Revenue surging 38.5% year-over-year

Operating MarginProfitability
20.0%8/10

Strong operational efficiency at 20.0%

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

TPG4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Profit MarginProfitability
4.0%3/10

4.0% margin — thin

P/E RatioValuation
94.4x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-53.02M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 22.1% and operating margin at 29.5%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : TPG

The strongest argument for TPG centers on Revenue Growth, Operating Margin. Revenue growth of 38.5% demonstrates continued momentum.

Bear Case : ACGL

No major red flags identified for ACGL, but monitor valuation.

Bear Case : TPG

The primary concerns for TPG are EPS Growth, Profit Margin, P/E Ratio. A P/E of 94.4x leaves little room for execution misses. Thin 4.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

ACGL profiles as a mature stock while TPG is a hypergrowth play — different risk/reward profiles.

TPG carries more volatility with a beta of 1.53 — expect wider price swings.

TPG is growing revenue faster at 38.5% — sustainability is the question.

ACGL generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (81/100 vs 53/100), backed by strong 22.1% margins. Both earn "Exceptional 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.

TPG Inc

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

TPG Inc. is a global alternative asset manager. The company is headquartered in Fort Worth, Texas.

Want to dig deeper into these stocks?