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ACGLO vs AFG

ACGLO
Arch Capital Group Ltd.
NEUTRAL
Price
$20.20
Market Cap
$11.78B
Sector
Financial Services
AI Confidence
78%
AFG
American Financial Group, Inc.
NEUTRAL
Price
$127.79
Market Cap
$10.66B
Sector
Financial Services
AI Confidence
65%

Valuation

P/E Ratio
ACGLO
4.31
AFG
13.48
Forward P/E
ACGLO
--
AFG
11.26
P/B Ratio
ACGLO
0.31
AFG
2.25
P/S Ratio
ACGLO
0.59
AFG
1.33
EV/EBITDA
ACGLO
1.3
AFG
8.99

Profitability

Gross Margin
ACGLO
37.16%
AFG
17.85%
Operating Margin
ACGLO
29.53%
AFG
12.72%
Profit Margin
ACGLO
22.07%
AFG
9.96%
ROE
ACGLO
19.54%
AFG
16.91%
ROA
ACGLO
4.44%
AFG
2.1%

Growth

Revenue Growth
ACGLO
8.5%
AFG
-0.8%
Earnings Growth
ACGLO
38.8%
AFG
19.5%

Financial Health

Debt/Equity
ACGLO
0.12
AFG
0.43
Current Ratio
ACGLO
1.08
AFG
2.16
Quick Ratio
ACGLO
0.5
AFG
1.0

Dividends

Dividend Yield
ACGLO
6.75%
AFG
2.74%
Payout Ratio
ACGLO
--
AFG
33.58%

AI Verdict

ACGLO NEUTRAL

ACGLO's Piotroski F-Score of 4/9 indicates a borderline stable financial health, falling short of strong resilience. The absence of an Altman Z-Score raises concern about default risk, though the low Debt/Equity (0.12) and strong profitability margins suggest solid balance sheet fundamentals. The stock trades at a deeply undervalued P/E of 4.31 and Price/Book of 0.31, well below sector averages, with a Graham Number of $83.06 and intrinsic value of $138.38, implying significant upside potential. However, the bearish insider sentiment, lack of analyst coverage, and recent price decline undermine near-term momentum despite strong earnings growth.

Strengths
Strong profitability metrics: 22.07% profit margin, 29.53% operating margin, and 19.54% ROE
Extremely low Debt/Equity ratio of 0.12, indicating conservative capital structure
Significant undervaluation relative to intrinsic and Graham fair value estimates
Risks
Piotroski F-Score of 4/9 indicates weak financial health, with only moderate stability
No Altman Z-Score available, creating uncertainty around bankruptcy risk despite low leverage
Bearish insider sentiment with one recent sale and zero buys in the last 6 months
AFG NEUTRAL

AFG's Advanced Deterministic Scorecard shows a Piotroski F-Score of 4/9, indicating stable but not strong financial health, while the absence of an Altman Z-Score prevents a full distress risk assessment. The stock trades below its growth-based intrinsic value of $279.66 but above the conservative Graham Number of $109.99, suggesting moderate undervaluation with structural risks. Profitability metrics like ROE (16.91%) and low Debt/Equity (0.43) are strong, but weak revenue growth (-0.80% YoY) and bearish insider activity weigh on momentum. Analysts recommend a 'buy' with a target price of $143.83, implying 12.5% upside, though recent price performance has been flat to negative in the short term.

Strengths
Strong return on equity (ROE) of 16.91%, above sector average and indicating efficient capital use
Low debt-to-equity ratio of 0.43, well below sector average of 1.70, signaling conservative leverage
Attractive dividend yield of 2.74% with a sustainable payout ratio of 33.58%
Risks
Piotroski F-Score of 4/9 indicates only stable financial health, with room for deterioration
Revenue declining YoY (-0.80%), raising concerns about top-line sustainability despite earnings growth
Missing Altman Z-Score prevents clear assessment of bankruptcy risk; absence is a red flag

Compare Another Pair

ACGLO vs AFG: Head-to-Head Comparison

This page compares Arch Capital Group Ltd. (ACGLO) and American Financial Group, Inc. (AFG) 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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