Arch Capital Group (ACGL) vs. The Competition Critical Comparison

Arch Capital Group (NASDAQ:ACGL) is one of 311 publicly-traded companies in the “Insurance” industry, but how does it weigh in compared to its peers? We will compare Arch Capital Group to related businesses based on the strength of its analyst recommendations, dividends, institutional ownership, profitability, earnings, risk and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for Arch Capital Group and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arch Capital Group	1	8	7	0	2.38
Arch Capital Group Competitors	3321	15619	16447	737	2.40

Arch Capital Group presently has a consensus price target of $109.94, indicating a potential upside of 3.37%. As a group, “Insurance” companies have a potential upside of 6.40%. Given Arch Capital Group’s peers stronger consensus rating and higher possible upside, analysts plainly believe Arch Capital Group has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Arch Capital Group and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Arch Capital Group	$18.07 billion	$4.40 billion	8.70
Arch Capital Group Competitors	$15.62 billion	$1.70 billion	34.44

Arch Capital Group has higher revenue and earnings than its peers. Arch Capital Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Arch Capital Group has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, Arch Capital Group’s peers have a beta of -1.51, suggesting that their average share price is 251% less volatile than the S&P 500.

Institutional and Insider Ownership

89.1% of Arch Capital Group shares are owned by institutional investors. Comparatively, 55.9% of shares of all “Insurance” companies are owned by institutional investors. 3.3% of Arch Capital Group shares are owned by company insiders. Comparatively, 13.6% of shares of all “Insurance” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Arch Capital Group and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arch Capital Group	23.31%	16.62%	4.64%
Arch Capital Group Competitors	9.24%	-9.74%	4.23%

Summary

Arch Capital Group beats its peers on 7 of the 13 factors compared.

Arch Capital Group Company Profile

Arch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products worldwide. The company's Insurance segment offers primary and excess casualty coverages; loss sensitive primary casualty insurance programs; directors' and officers' liability, errors and omissions liability, employment practices and fiduciary liability, crime, professional indemnity, and other financial related coverages; medical professional and general liability insurance coverages; and workers' compensation and umbrella liability, as well as commercial automobile and inland marine products. It also provides property, energy, marine, and aviation insurance; travel insurance; accident, disability, and medical plan insurance coverages; captive insurance programs; employer's liability; contract and commercial surety coverages; and collateral protection, debt cancellation, and service contract reimbursement products. This segment markets its products through a group of licensed independent retail and wholesale brokers. Its Reinsurance segment provides casualty reinsurance for third party liability exposures; marine and aviation; motor reinsurance, whole account multi-line treaties, cyber, trade credit, surety, accident and health, workers' compensation catastrophe, agriculture, trade credit, and political risk products; reinsurance protection for catastrophic losses, and personal lines and commercial property exposures; life reinsurance; casualty clash; and risk management solutions. This segment markets its reinsurance products through brokers. The company's Mortgage segment offers direct mortgage insurance and mortgage reinsurance. The company was founded in 1995 and is based in Pembroke, Bermuda.