WallStSmart

Arch Capital Group Ltd. (ACGL)vsWaterdrop Inc ADR (WDH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 397% more annual revenue ($19.78B vs $3.98B). ACGL leads profitability with a 24.6% profit margin vs 14.3%. WDH trades at a lower P/E of 6.4x. 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

WDH

Buy

63

out of 100

Grade: C+

Growth: 9.3Profit: 6.0Value: 6.7Quality: 7.3
Piotroski: 4/9

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

WDH5 strengths · Avg: 9.6/10
P/E RatioValuation
6.4x10/10

Attractively priced relative to earnings

Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
105.5%10/10

Revenue surging 105.5% year-over-year

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

EPS GrowthGrowth
45.4%8/10

Earnings expanding 45.4% YoY

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

WDH1 concerns · Avg: 3.0/10
Market CapQuality
$506.62M3/10

Smaller company, higher risk/reward

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 : WDH

The strongest argument for WDH centers on P/E Ratio, Price/Book, Revenue Growth. Revenue growth of 105.5% demonstrates continued momentum.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth, Altman Z-Score.

Bear Case : WDH

The primary concerns for WDH are Market Cap.

Key Dynamics to Monitor

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

ACGL carries more volatility with a beta of 0.31 — expect wider price swings.

WDH is growing revenue faster at 105.5% — sustainability is the question.

Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ACGL scores higher overall (79/100 vs 63/100), 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.

Waterdrop Inc ADR

FINANCIAL SERVICES · INSURANCE - DIVERSIFIED · China

Waterdrop Inc. provides online insurance brokerage services to connect and connect users with related insurance products underwritten by insurance companies in the People's Republic of China. The company is headquartered in Beijing, the People's Republic of China.

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