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ACGL vs. ARCC: A Head-to-Head Stock Comparison

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Here’s a clear look at ACGL and ARCC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolACGLARCC
Company NameArch Capital Group Ltd.Ares Capital Corporation
CountryBermudaUnited States
GICS SectorFinancialsFinancials
GICS IndustryInsuranceCapital Markets
Market Capitalization34.65 billion USD15.72 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateSeptember 14, 1995October 5, 2004
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of ACGL and ARCC by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

ACGL vs. ARCC: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolACGLARCC
5-Day Price Return1.51%-1.63%
13-Week Price Return-2.44%1.73%
26-Week Price Return2.97%-3.42%
52-Week Price Return-9.86%6.96%
Month-to-Date Return7.88%-1.50%
Year-to-Date Return0.53%1.83%
10-Day Avg. Volume1.98M3.42M
3-Month Avg. Volume1.96M3.93M
3-Month Volatility23.39%13.02%
Beta0.470.76

Profitability

Return on Equity (TTM)

ACGL

17.03%

Insurance Industry

Max
29.03%
Q3
18.11%
Median
13.90%
Q1
10.42%
Min
-0.64%

ACGL’s Return on Equity of 17.03% is on par with the norm for the Insurance industry, indicating its profitability relative to shareholder equity is typical for the sector.

ARCC

10.05%

Capital Markets Industry

Max
38.97%
Q3
21.61%
Median
13.77%
Q1
8.31%
Min
-4.25%

ARCC’s Return on Equity of 10.05% is on par with the norm for the Capital Markets industry, indicating its profitability relative to shareholder equity is typical for the sector.

ACGL vs. ARCC: A comparison of their Return on Equity (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Net Profit Margin (TTM)

ACGL

20.05%

Insurance Industry

Max
26.78%
Q3
14.06%
Median
9.15%
Q1
5.48%
Min
-7.05%

A Net Profit Margin of 20.05% places ACGL in the upper quartile for the Insurance industry, signifying strong profitability and more effective cost management than most of its peers.

ARCC

44.94%

Capital Markets Industry

Max
66.67%
Q3
35.11%
Median
23.49%
Q1
13.63%
Min
-15.18%

A Net Profit Margin of 44.94% places ARCC in the upper quartile for the Capital Markets industry, signifying strong profitability and more effective cost management than most of its peers.

ACGL vs. ARCC: A comparison of their Net Profit Margin (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Operating Profit Margin (TTM)

ACGL

20.17%

Insurance Industry

Max
35.49%
Q3
19.49%
Median
14.35%
Q1
8.53%
Min
-5.25%

In the Insurance industry, Operating Profit Margin is often not the primary measure of operational efficiency.

ARCC

48.72%

Capital Markets Industry

Max
86.40%
Q3
46.46%
Median
32.80%
Q1
18.32%
Min
-21.87%

An Operating Profit Margin of 48.72% places ARCC in the upper quartile for the Capital Markets industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ACGL vs. ARCC: A comparison of their Operating Profit Margin (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Profitability at a Glance

SymbolACGLARCC
Return on Equity (TTM)17.03%10.05%
Return on Assets (TTM)5.00%4.80%
Net Profit Margin (TTM)20.05%44.94%
Operating Profit Margin (TTM)20.17%48.72%
Gross Profit Margin (TTM)--50.28%

Financial Strength

Current Ratio (MRQ)

ACGL

0.72

Insurance Industry

Max
2.97
Q3
1.33
Median
0.55
Q1
0.15
Min
0.00

For the Insurance industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

ARCC

1.07

Capital Markets Industry

Max
3.76
Q3
1.89
Median
1.01
Q1
0.54
Min
-0.41

For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

ACGL vs. ARCC: A comparison of their Current Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ACGL

0.12

Insurance Industry

Max
1.25
Q3
0.65
Median
0.34
Q1
0.22
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Insurance industry.

ARCC

1.01

Capital Markets Industry

Max
6.62
Q3
2.84
Median
1.02
Q1
0.32
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.

ACGL vs. ARCC: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Interest Coverage Ratio (TTM)

ACGL

6.33

Insurance Industry

Max
43.68
Q3
20.84
Median
9.56
Q1
3.34
Min
-5.73

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Insurance industry.

ARCC

2.48

Capital Markets Industry

Max
126.03
Q3
60.98
Median
11.77
Q1
4.95
Min
-36.26

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.

ACGL vs. ARCC: A comparison of their Interest Coverage Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Financial Strength at a Glance

SymbolACGLARCC
Current Ratio (MRQ)0.721.07
Quick Ratio (MRQ)0.721.07
Debt-to-Equity Ratio (MRQ)0.121.01
Interest Coverage Ratio (TTM)6.332.48

Growth

Revenue Growth

ACGL vs. ARCC: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ACGL vs. ARCC: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ACGL

5.51%

Insurance Industry

Max
8.23%
Q3
4.54%
Median
3.42%
Q1
1.97%
Min
0.00%

With a Dividend Yield of 5.51%, ACGL offers a more attractive income stream than most of its peers in the Insurance industry, signaling a strong commitment to shareholder returns.

ARCC

7.69%

Capital Markets Industry

Max
10.26%
Q3
4.86%
Median
2.78%
Q1
1.22%
Min
0.00%

With a Dividend Yield of 7.69%, ARCC offers a more attractive income stream than most of its peers in the Capital Markets industry, signaling a strong commitment to shareholder returns.

ACGL vs. ARCC: A comparison of their Dividend Yield (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Dividend Payout Ratio (TTM)

ACGL

51.23%

Insurance Industry

Max
168.02%
Q3
85.57%
Median
50.71%
Q1
22.04%
Min
0.00%

ACGL’s Dividend Payout Ratio of 51.23% is within the typical range for the Insurance industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ARCC

89.80%

Capital Markets Industry

Max
200.72%
Q3
101.92%
Median
57.97%
Q1
32.36%
Min
0.00%

ARCC’s Dividend Payout Ratio of 89.80% is within the typical range for the Capital Markets industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ACGL vs. ARCC: A comparison of their Dividend Payout Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Dividend at a Glance

SymbolACGLARCC
Dividend Yield (TTM)5.51%7.69%
Dividend Payout Ratio (TTM)51.23%89.80%

Valuation

Price-to-Earnings Ratio (TTM)

ACGL

9.30

Insurance Industry

Max
28.91
Q3
17.76
Median
13.63
Q1
10.02
Min
2.89

In the lower quartile for the Insurance industry, ACGL’s P/E Ratio of 9.30 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

ARCC

11.68

Capital Markets Industry

Max
58.89
Q3
31.00
Median
18.54
Q1
12.09
Min
5.24

In the lower quartile for the Capital Markets industry, ARCC’s P/E Ratio of 11.68 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

ACGL vs. ARCC: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Price-to-Sales Ratio (TTM)

ACGL

1.86

Insurance Industry

Max
3.72
Q3
1.98
Median
1.23
Q1
0.81
Min
0.23

ACGL’s P/S Ratio of 1.86 aligns with the market consensus for the Insurance industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ARCC

5.25

Capital Markets Industry

Max
14.49
Q3
7.41
Median
4.68
Q1
2.25
Min
0.04

ARCC’s P/S Ratio of 5.25 aligns with the market consensus for the Capital Markets industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ACGL vs. ARCC: A comparison of their Price-to-Sales Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Price-to-Book Ratio (MRQ)

ACGL

1.48

Insurance Industry

Max
4.37
Q3
2.48
Median
1.68
Q1
1.19
Min
0.19

ACGL’s P/B Ratio of 1.48 is within the conventional range for the Insurance industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

ARCC

1.09

Capital Markets Industry

Max
9.48
Q3
4.94
Median
2.42
Q1
1.21
Min
0.38

ARCC’s P/B Ratio of 1.09 is in the lower quartile for the Capital Markets industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

ACGL vs. ARCC: A comparison of their Price-to-Book Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Valuation at a Glance

SymbolACGLARCC
Price-to-Earnings Ratio (TTM)9.3011.68
Price-to-Sales Ratio (TTM)1.865.25
Price-to-Book Ratio (MRQ)1.481.09
Price-to-Free Cash Flow Ratio (TTM)5.6717.21