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ACGL vs PRU

ACGL
Arch Capital Group Ltd.
NEUTRAL
Price
$93.47
Market Cap
$33.89B
Sector
Financial Services
AI Confidence
78%
PRU
Prudential Financial, Inc.
NEUTRAL
Price
$98.28
Market Cap
$34.2B
Sector
Financial Services
AI Confidence
50%

Valuation

P/E Ratio
ACGL
8.06
PRU
9.84
Forward P/E
ACGL
9.24
PRU
6.4
P/B Ratio
ACGL
1.43
PRU
1.05
P/S Ratio
ACGL
1.7
PRU
0.56
EV/EBITDA
ACGL
6.0
PRU
7.71

Profitability

Gross Margin
ACGL
37.16%
PRU
29.6%
Operating Margin
ACGL
29.53%
PRU
10.41%
Profit Margin
ACGL
22.07%
PRU
5.84%
ROE
ACGL
19.54%
PRU
11.36%
ROA
ACGL
4.44%
PRU
0.42%

Growth

Revenue Growth
ACGL
8.5%
PRU
31.2%
Earnings Growth
ACGL
38.8%
PRU
--

Financial Health

Debt/Equity
ACGL
0.12
PRU
1.24
Current Ratio
ACGL
1.08
PRU
0.92
Quick Ratio
ACGL
0.5
PRU
0.81

Dividends

Dividend Yield
ACGL
--
PRU
5.58%
Payout Ratio
ACGL
0.0%
PRU
54.05%

AI Verdict

ACGL NEUTRAL

ACGL exhibits mixed fundamental signals: the Piotroski F-Score of 4/9 indicates a borderline stable financial health, while the absence of an Altman Z-Score raises concern about default risk, particularly given the low quick ratio of 0.50. The stock trades at a compelling 8.06x P/E, well below the sector average of 30.46, and the Graham Number of $130.62 suggests undervaluation, though the intrinsic value estimate of $342.2 implies a significant growth premium. Strong profitability (22.07% margin, 19.54% ROE) and consistent earnings beats (16.97% average surprise) support upside potential, but the lack of dividends and bearish insider activity undermine confidence. The 1-year return of +3.4% lags behind peers, reflecting market skepticism despite solid fundamentals.

Strengths
Strong profitability with 22.07% net margin and 19.54% ROE
Consistent earnings beat history with 16.97% average surprise over last 4 quarters
Attractive valuation with P/E of 8.06, significantly below sector average of 30.46
Risks
Piotroski F-Score of 4/9 signals weak financial health, bordering on instability
No Altman Z-Score available; absence of distress risk metric is a red flag
Bearish insider sentiment with $27.21M in sales over 6 months, including large sales by Chairman and CEO
PRU NEUTRAL

PRU shows bullish fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Key strengths include strong valuation and growth metrics. Price trades at a 40.5% premium to fair value estimate ($69.93), limiting near-term upside from a valuation perspective.

Strengths
Attractive valuation with P/E of 9.8
Undervalued vs Graham Number ($144.76)
Strong revenue growth of 31.2%
Risks
Limited historical data available for full assessment
Price trades at a 40.5% premium to fair value estimate ($69.93), limiting near-term upside from a valuation perspective.

Compare Another Pair

ACGL vs PRU: Head-to-Head Comparison

This page compares Arch Capital Group Ltd. (ACGL) and Prudential Financial, Inc. (PRU) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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