Arch Capital Group Ltd (ACGL)vsUpstart Holdings Inc (UPST)
ACGL
Arch Capital Group Ltd
$94.46
+1.88%
FINANCIAL SERVICES · Cap: $34.58B
UPST
Upstart Holdings Inc
$30.48
-7.24%
FINANCIAL SERVICES · Cap: $2.92B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd generates 1753% more annual revenue ($19.93B vs $1.08B). ACGL leads profitability with a 22.1% profit margin vs 5.0%. ACGL trades at a lower P/E of 8.4x. ACGL earns a higher WallStSmart Score of 81/100 (A-).
ACGL
Exceptional Buy81
out of 100
Grade: A-
UPST
Buy51
out of 100
Grade: C-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 22 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 29.5%
Earnings expanding 38.8% YoY
Revenue surging 34.4% year-over-year
Earnings expanding 209.1% YoY
Areas to Watch
No major concerns identified
ROE of 7.5% — below average capital efficiency
5.0% margin — thin
Premium valuation, high expectations priced in
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull 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 : UPST
The strongest argument for UPST centers on Revenue Growth, EPS Growth. Revenue growth of 34.4% demonstrates continued momentum.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : UPST
The primary concerns for UPST are Return on Equity, Profit Margin, P/E Ratio. A P/E of 67.7x leaves little room for execution misses. Thin 5.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
ACGL profiles as a mature stock while UPST is a hypergrowth play — different risk/reward profiles.
UPST carries more volatility with a beta of 2.16 — expect wider price swings.
UPST is growing revenue faster at 34.4% — 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 51/100), 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.
Upstart Holdings Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
Upstart Holdings, Inc. operates a cloud-based artificial intelligence (AI) lending platform. The company is headquartered in San Mateo, California.
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