Arch Capital Group Ltd. (ACGL)vsWarner Bros Discovery Inc (WBD)
ACGL
Arch Capital Group Ltd.
$93.80
-0.76%
FINANCIAL SERVICES · Cap: $33.09B
WBD
Warner Bros Discovery Inc
$27.11
-0.04%
COMMUNICATION SERVICES · Cap: $67.99B
Smart Verdict
WallStSmart Research — data-driven comparison
Warner Bros Discovery Inc generates 89% more annual revenue ($37.30B vs $19.78B). ACGL leads profitability with a 24.6% profit margin vs 1.9%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 79/100 (B+).
ACGL
Strong Buy79
out of 100
Grade: B+
WBD
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ACGL.
Margin of Safety
+60.6%
Fair Value
$71.08
Current Price
$27.11
$43.97 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 94.6% YoY
Every $100 of equity generates 21 in profit
Keeps 25 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Earnings expanding 226.7% YoY
Large-cap with strong market position
Reasonable price relative to book value
Areas to Watch
Revenue declined 3.3%
ROE of 2.1% — below average capital efficiency
1.9% margin — thin
Expensive relative to growth rate
Revenue declined 5.7%
Comparative Analysis Report
WallStSmart ResearchBull 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 : WBD
The strongest argument for WBD centers on EPS Growth, Market Cap, Price/Book.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth.
Bear Case : WBD
The primary concerns for WBD are Return on Equity, Profit Margin, PEG Ratio. Thin 1.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
ACGL profiles as a declining stock while WBD is a value play — different risk/reward profiles.
WBD carries more volatility with a beta of 1.57 — expect wider price swings.
ACGL is growing revenue faster at -3.3% — 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 51/100), backed by strong 24.6% margins. WBD offers better value entry with a 60.6% margin of safety. 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.
Warner Bros Discovery Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Warner Bros. The company is headquartered in New York, New York.
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