WallStSmart

Arch Capital Group Ltd (ACGL)vsYirendai Ltd (YRD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 248% more annual revenue ($19.93B vs $5.72B). ACGL leads profitability with a 22.1% profit margin vs 0.7%. 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: 7.0Quality: 6.5
Piotroski: 5/9

YRD

Hold

41

out of 100

Grade: D

Growth: 4.0Profit: 5.0Value: 5.0Quality: 8.5
Piotroski: 3/9Altman Z: 3.45

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.4x10/10

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

YRD3 strengths · Avg: 10.0/10
Price/BookValuation
0.1x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.4510/10

Safe zone — low bankruptcy risk

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

YRD4 concerns · Avg: 3.3/10
P/E RatioValuation
30.6x4/10

Premium valuation, high expectations priced in

Market CapQuality
$186.04M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.4%3/10

ROE of 0.4% — below average capital efficiency

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

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 : YRD

The strongest argument for YRD centers on Price/Book, Debt/Equity, Altman Z-Score. PEG of 1.24 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

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

Bear Case : YRD

The primary concerns for YRD are P/E Ratio, Market Cap, Return on Equity. Thin 0.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

ACGL profiles as a mature stock while YRD is a value play — different risk/reward profiles.

YRD carries more volatility with a beta of 1.13 — expect wider price swings.

ACGL is growing revenue faster at 8.5% — 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 41/100), backed by strong 22.1% margins. Both earn "Exceptional Buy" and "Hold" 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.

Yirendai Ltd

FINANCIAL SERVICES · CREDIT SERVICES · China

Yiren Digital Ltd., is an online consumer finance marketplace connecting borrowers and investors in the People's Republic of China.

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