WallStSmart

Arch Capital Group Ltd (ACGL)vsVertiv Holdings Co (VRT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 95% more annual revenue ($19.93B vs $10.23B). ACGL leads profitability with a 22.1% profit margin vs 13.0%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

81

out of 100

Grade: A-

Growth: 8.7Profit: 8.0Value: 10.0Quality: 6.5
Piotroski: 5/9

VRT

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 4.7Quality: 6.3
Piotroski: 4/9Altman Z: 2.25
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ACGLUndervalued (+81.8%)

Margin of Safety

+81.8%

Fair Value

$542.88

Current Price

$93.42

$449.46 discount

UndervaluedFair: $542.88Overvalued
VRTSignificantly Overvalued (-55.7%)

Margin of Safety

-55.7%

Fair Value

$159.59

Current Price

$251.07

$91.48 premium

UndervaluedFair: $159.59Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.1x10/10

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

VRT4 strengths · Avg: 8.8/10
Return on EquityProfitability
41.8%10/10

Every $100 of equity generates 42 in profit

Market CapQuality
$103.64B9/10

Large-cap with strong market position

Operating MarginProfitability
21.2%8/10

Strong operational efficiency at 21.2%

Revenue GrowthGrowth
22.7%8/10

Revenue surging 22.7% year-over-year

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

VRT4 concerns · Avg: 3.0/10
PEG RatioValuation
1.834/10

Expensive relative to growth rate

EPS GrowthGrowth
2.0%4/10

2.0% earnings growth

P/E RatioValuation
79.4x2/10

Premium valuation, high expectations priced in

Price/BookValuation
24.4x2/10

Trading at 24.4x book value

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 : VRT

The strongest argument for VRT centers on Return on Equity, Market Cap, Operating Margin. Revenue growth of 22.7% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : VRT

The primary concerns for VRT are PEG Ratio, EPS Growth, P/E Ratio. A P/E of 79.4x leaves little room for execution misses.

Key Dynamics to Monitor

ACGL profiles as a mature stock while VRT is a growth play — different risk/reward profiles.

VRT carries more volatility with a beta of 2.08 — expect wider price swings.

VRT is growing revenue faster at 22.7% — 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 67/100), backed by strong 22.1% margins. Both earn "Exceptional 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.

Vertiv Holdings Co

INDUSTRIALS · ELECTRICAL EQUIPMENT & PARTS · USA

Vertiv Holdings Co designs, manufactures and services critical digital infrastructure technologies and lifecycle services for data centers, communication networks, and commercial and industrial environments in the Americas, Asia Pacific, Europe, the Middle East, and Africa. The company is headquartered in Columbus, Ohio.

Want to dig deeper into these stocks?