Contrasting Arch Capital Group (ACGL) and Its Competitors

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

Analyst Ratings

This is a summary of current ratings for Arch Capital Group and its rivals, as provided 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	3335	15674	16522	740	2.40

Arch Capital Group currently has a consensus target price of $111.65, suggesting a potential upside of 4.07%. As a group, “Insurance” companies have a potential upside of 5.99%. Given Arch Capital Group’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Arch Capital Group has less favorable growth aspects than its rivals.

Profitability

This table compares Arch Capital Group and its rivals’ 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	9.09%	-9.93%	4.08%

Volatility and Risk

Arch Capital Group has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500. Comparatively, Arch Capital Group’s rivals have a beta of -1.58, meaning that their average share price is 258% less volatile than the S&P 500.

Insider and Institutional Ownership

89.1% of Arch Capital Group shares are owned by institutional investors. Comparatively, 55.8% 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Arch Capital Group and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Arch Capital Group	$19.93 billion	$4.40 billion	8.77
Arch Capital Group Competitors	$15.36 billion	$1.70 billion	34.42

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

Summary

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

About Arch Capital Group

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.