WallStSmart

Arch Capital Group Ltd (ACGL)vsWestern Digital Corporation (WDC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 68% more annual revenue ($19.78B vs $11.78B). WDC leads profitability with a 55.3% profit margin vs 24.6%. WDC appears more attractively valued with a PEG of 0.87. WDC 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

WDC

Strong Buy

79

out of 100

Grade: B+

Growth: 7.3Profit: 9.5Value: 6.3Quality: 5.0

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.2x10/10

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

WDC6 strengths · Avg: 9.8/10
Return on EquityProfitability
85.9%10/10

Every $100 of equity generates 86 in profit

Profit MarginProfitability
55.3%10/10

Keeps 55 of every $100 in revenue as profit

Operating MarginProfitability
37.0%10/10

Strong operational efficiency at 37.0%

Revenue GrowthGrowth
45.5%10/10

Revenue surging 45.5% year-over-year

EPS GrowthGrowth
477.2%10/10

Earnings expanding 477.2% YoY

Market CapQuality
$152.47B9/10

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%

WDC2 concerns · Avg: 3.0/10
P/E RatioValuation
25.8x4/10

Moderate valuation

Price/BookValuation
21.2x2/10

Trading at 21.2x 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 : WDC

The strongest argument for WDC centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 55.3% and operating margin at 37.0%. Revenue growth of 45.5% demonstrates continued momentum.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth.

Bear Case : WDC

The primary concerns for WDC are P/E Ratio, Price/Book.

Key Dynamics to Monitor

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

WDC carries more volatility with a beta of 2.16 — expect wider price swings.

WDC is growing revenue faster at 45.5% — 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 79/100), 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.

Western Digital Corporation

TECHNOLOGY · COMPUTER HARDWARE · USA

Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.

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