WallStSmart

Arch Capital Group Ltd. (ACGL)vsUbiquiti Networks Inc (UI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 565% more annual revenue ($19.78B vs $2.97B). UI leads profitability with a 29.9% profit margin vs 24.6%. ACGL appears more attractively valued with a PEG of 1.06. 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: 6.5
Piotroski: 5/9

UI

Strong Buy

71

out of 100

Grade: B

Growth: 9.3Profit: 10.0Value: 3.3Quality: 7.3
Piotroski: 5/9Altman Z: 5.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ACGL.

UISignificantly Overvalued (-85.1%)

Margin of Safety

-85.1%

Fair Value

$385.30

Current Price

$842.10

$456.80 premium

UndervaluedFair: $385.30Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.3x10/10

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
21.3%9/10

Every $100 of equity generates 21 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

UI6 strengths · Avg: 9.8/10
Return on EquityProfitability
136.1%10/10

Every $100 of equity generates 136 in profit

Operating MarginProfitability
35.9%10/10

Strong operational efficiency at 35.9%

Revenue GrowthGrowth
35.8%10/10

Revenue surging 35.8% year-over-year

EPS GrowthGrowth
70.8%10/10

Earnings expanding 70.8% YoY

Altman Z-ScoreHealth
5.1410/10

Safe zone — low bankruptcy risk

Market CapQuality
$56.08B9/10

Large-cap with strong market position

Areas to Watch

ACGL1 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

UI2 concerns · Avg: 2.0/10
P/E RatioValuation
63.3x2/10

Premium valuation, high expectations priced in

Price/BookValuation
50.2x2/10

Trading at 50.2x 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 : UI

The strongest argument for UI centers on Return on Equity, Operating Margin, Revenue Growth. Profitability is solid with margins at 29.9% and operating margin at 35.9%. Revenue growth of 35.8% demonstrates continued momentum.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth.

Bear Case : UI

The primary concerns for UI are P/E Ratio, Price/Book. A P/E of 63.3x leaves little room for execution misses.

Key Dynamics to Monitor

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

UI carries more volatility with a beta of 1.47 — expect wider price swings.

UI is growing revenue faster at 35.8% — 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 71/100), 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.

Ubiquiti Networks Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Ubiquiti Inc. develops network technology for service providers, businesses and consumers. The company is headquartered in New York, New York.

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