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ACGLO vs BRK-B

ACGLO
Arch Capital Group Ltd.
NEUTRAL
Price
$20.20
Market Cap
$11.78B
Sector
Financial Services
AI Confidence
78%
BRK-B
Berkshire Hathaway Inc.
NEUTRAL
Price
$479.75
Market Cap
$1.03T
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
ACGLO
4.31
BRK-B
15.46
Forward P/E
ACGLO
--
BRK-B
22.06
P/B Ratio
ACGLO
0.31
BRK-B
0.0
P/S Ratio
ACGLO
0.59
BRK-B
2.79
EV/EBITDA
ACGLO
1.3
BRK-B
-2.12

Profitability

Gross Margin
ACGLO
37.16%
BRK-B
26.15%
Operating Margin
ACGLO
29.53%
BRK-B
32.96%
Profit Margin
ACGLO
22.07%
BRK-B
18.03%
ROE
ACGLO
19.54%
BRK-B
9.81%
ROA
ACGLO
4.44%
BRK-B
5.11%

Growth

Revenue Growth
ACGLO
8.5%
BRK-B
-0.7%
Earnings Growth
ACGLO
38.8%
BRK-B
-2.5%

Financial Health

Debt/Equity
ACGLO
0.12
BRK-B
0.19
Current Ratio
ACGLO
1.08
BRK-B
7.07
Quick Ratio
ACGLO
0.5
BRK-B
6.62

Dividends

Dividend Yield
ACGLO
6.75%
BRK-B
--
Payout Ratio
ACGLO
--
BRK-B
0.0%

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
BRK-B NEUTRAL

The deterministic health profile is weak, highlighted by a Piotroski F-Score of 3/9, indicating deteriorating operational efficiency and profitability trends. While the company maintains a fortress balance sheet with a Debt/Equity ratio of 0.19 and a Current Ratio of 7.07, the stock is trading at a significant premium to its growth-based intrinsic value of $217.21. Negative YoY revenue and earnings growth, coupled with a bearish technical trend, offset the positive analyst sentiment and long-term historical performance.

Strengths
Exceptional liquidity with a Current Ratio of 7.07
Very low leverage (Debt/Equity 0.19)
Strong operating margins at 32.96%
Risks
Significant overvaluation relative to intrinsic value ($479.75 vs $217.21)
Negative YoY earnings growth (-2.50%) and revenue growth (-0.70%)
Weak Piotroski F-Score (3/9) suggesting declining financial health trends

Compare Another Pair

ACGLO vs BRK-B: Head-to-Head Comparison

This page compares Arch Capital Group Ltd. (ACGLO) and Berkshire Hathaway Inc. (BRK-B) 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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