WallStSmart

Arch Capital Group Ltd. (ACGL)vsUnitedHealth Group Incorporated (UNH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

UnitedHealth Group Incorporated generates 2174% more annual revenue ($449.71B vs $19.78B). ACGL leads profitability with a 24.6% profit margin vs 2.7%. 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: 6.0
Piotroski: 6/9Altman Z: 1.48

UNH

Buy

54

out of 100

Grade: C-

Growth: 5.3Profit: 5.5Value: 4.0Quality: 5.5
Piotroski: 4/9Altman Z: 2.28
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ACGL.

UNHSignificantly Overvalued (-26.9%)

Margin of Safety

-26.9%

Fair Value

$321.13

Current Price

$399.47

$78.34 premium

UndervaluedFair: $321.13Overvalued

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
1.3x10/10

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

UNH2 strengths · Avg: 9.0/10
Market CapQuality
$373.28B10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$8.15B8/10

Generating 8.1B in free cash flow

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

UNH4 concerns · Avg: 3.8/10
P/E RatioValuation
30.8x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
2.0%4/10

2.0% revenue growth

EPS GrowthGrowth
0.7%4/10

0.7% earnings growth

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

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 : UNH

The strongest argument for UNH centers on Market Cap, Free Cash Flow. PEG of 1.42 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 : UNH

The primary concerns for UNH are P/E Ratio, Revenue Growth, EPS Growth. Thin 2.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

ACGL profiles as a declining stock while UNH is a value play — different risk/reward profiles.

UNH carries more volatility with a beta of 0.65 — expect wider price swings.

UNH is growing revenue faster at 2.0% — sustainability is the question.

UNH generates stronger free cash flow (8.1B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (79/100 vs 54/100), backed by strong 24.6% margins. Both earn "Strong 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.

UnitedHealth Group Incorporated

HEALTHCARE · HEALTHCARE PLANS · USA

UnitedHealth Group Incorporated is an American for-profit multinational managed healthcare and insurance company based in Minnetonka, Minnesota. It offers health care products and insurance services. In 2020, it was the second-largest healthcare company (behind CVS Health) by revenue with $257.1 billion, and the largest insurance company by net premiums. UnitedHealthcare revenues comprise 80% of the Group's overall revenue.

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