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

Updated on July 7, 2025

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

Company Overview

ACGL’s market capitalization of 33.42 billion USD is substantially larger than ARCC’s 15.56 billion USD, indicating a significant difference in their market valuations.

With betas of 0.52 for ACGL and 0.73 for ARCC, both stocks show similar sensitivity to overall market movements.

Symbol	ACGL	ARCC
Company Name	Arch Capital Group Ltd.	Ares Capital Corporation
Country	BM	US
Sector	Financial Services	Financial Services
Industry	Insurance - Diversified	Asset Management
CEO	Nicolas Alain Emmanuel Papadopoulo	Kort Schnabel
Price	89.19 USD	22.41 USD
Market Cap	33.42 billion USD	15.56 billion USD
Beta	0.52	0.73
Exchange	NASDAQ	NASDAQ
IPO Date	September 14, 1995	October 5, 2004
ADR	No	No

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.

Profitability

Return on Equity

ACGL

17.66%

Insurance - Diversified Industry

Max: 19.59%
Q3: 17.66%
Median: 12.77%
Q1: 7.56%
Min: -4.43%

ACGL’s Return on Equity of 17.66% is on par with the norm for the Insurance - Diversified industry, indicating its profitability relative to shareholder equity is typical for the sector.

ARCC

11.03%

Asset Management Industry

Max: 34.25%
Q3: 18.22%
Median: 11.24%
Q1: 5.81%
Min: -5.72%

ARCC’s Return on Equity of 11.03% is on par with the norm for the Asset Management industry, indicating its profitability relative to shareholder equity is typical for the sector.

ACGL vs. ARCC: A comparison of their ROE against their respective Insurance - Diversified and Asset Management industry benchmarks.

Return on Invested Capital

ACGL

9.46%

Insurance - Diversified Industry

Max: 32.46%
Q3: 16.21%
Median: 9.46%
Q1: 2.09%
Min: -10.51%

Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Diversified industry.

ARCC

208.60%

Asset Management Industry

Max: 42.18%
Q3: 20.06%
Median: 8.68%
Q1: 3.13%
Min: -16.42%

ARCC’s Return on Invested Capital of 208.60% is exceptionally high, placing it well beyond the typical range for the Asset Management industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.

ACGL vs. ARCC: A comparison of their ROIC against their respective Insurance - Diversified and Asset Management industry benchmarks.

Net Profit Margin

ACGL

21.23%

Insurance - Diversified Industry

Max: 26.00%
Q3: 19.46%
Median: 9.37%
Q1: 5.55%
Min: -7.05%

A Net Profit Margin of 21.23% places ACGL in the upper quartile for the Insurance - Diversified industry, signifying strong profitability and more effective cost management than most of its peers.

ARCC

67.48%

Asset Management Industry

Max: 91.66%
Q3: 57.81%
Median: 29.48%
Q1: 15.70%
Min: -27.65%

A Net Profit Margin of 67.48% places ARCC in the upper quartile for the Asset Management industry, signifying strong profitability and more effective cost management than most of its peers.

ACGL vs. ARCC: A comparison of their Net Profit Margin against their respective Insurance - Diversified and Asset Management industry benchmarks.

Operating Profit Margin

ACGL

44.52%

Insurance - Diversified Industry

Max: 44.52%
Q3: 25.84%
Median: 14.16%
Q1: 6.78%
Min: -2.60%

An Operating Profit Margin of 44.52% places ACGL in the upper quartile for the Insurance - Diversified industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ARCC

91.13%

Asset Management Industry

Max: 99.76%
Q3: 78.28%
Median: 34.76%
Q1: 21.75%
Min: -48.25%

An Operating Profit Margin of 91.13% places ARCC in the upper quartile for the Asset Management 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 Margin against their respective Insurance - Diversified and Asset Management industry benchmarks.

Profitability at a Glance

Symbol	ACGL	ARCC
Return on Equity (TTM)	17.66%	11.03%
Return on Assets (TTM)	5.01%	5.08%
Return on Invested Capital (TTM)	9.46%	208.60%
Net Profit Margin (TTM)	21.23%	67.48%
Operating Profit Margin (TTM)	44.52%	91.13%
Gross Profit Margin (TTM)	98.20%	95.92%

Financial Strength

Current Ratio

ACGL

Insurance - Diversified Industry

Max: 4.41
Q3: 4.03
Median: 2.86
Q1: 2.82
Min: 2.82

Current Ratio data for ACGL is currently unavailable.

ARCC

Asset Management Industry

Max: 12.44
Q3: 5.76
Median: 3.04
Q1: 1.03
Min: 0.01

Current Ratio data for ARCC is currently unavailable.

ACGL vs. ARCC: A comparison of their Current Ratio against their respective Insurance - Diversified and Asset Management industry benchmarks.

Debt-to-Equity Ratio

ACGL

0.13

Insurance - Diversified Industry

Max: 0.54
Q3: 0.39
Median: 0.27
Q1: 0.21
Min: 0.13

Falling into the lower quartile for the Insurance - Diversified industry, ACGL’s Debt-to-Equity Ratio of 0.13 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ARCC

Asset Management Industry

Max: 2.62
Q3: 1.42
Median: 0.76
Q1: 0.34
Min: 0.01

Debt-to-Equity Ratio data for ARCC is currently unavailable.

ACGL vs. ARCC: A comparison of their D/E Ratio against their respective Insurance - Diversified and Asset Management industry benchmarks.

Interest Coverage Ratio

ACGL

73.83

Insurance - Diversified Industry

Max: 19.23
Q3: 17.46
Median: 7.97
Q1: 4.61
Min: -1.63

With an Interest Coverage Ratio of 73.83, ACGL demonstrates a superior capacity to service its debt, placing it well above the typical range for the Insurance - Diversified industry. This stems from either robust earnings or a conservative debt load.

ARCC

3.77

Asset Management Industry

Max: 13.30
Q3: 6.30
Median: 2.71
Q1: 1.00
Min: -6.91

ARCC’s Interest Coverage Ratio of 3.77 is positioned comfortably within the norm for the Asset Management industry, indicating a standard and healthy capacity to cover its interest payments.

ACGL vs. ARCC: A comparison of their Interest Coverage against their respective Insurance - Diversified and Asset Management industry benchmarks.

Financial Strength at a Glance

Symbol	ACGL	ARCC
Current Ratio (TTM)	--	--
Quick Ratio (TTM)	--	--
Debt-to-Equity Ratio (TTM)	0.13	--
Debt-to-Asset Ratio (TTM)	0.04	--
Net Debt-to-EBITDA Ratio (TTM)	0.38	-0.35
Interest Coverage Ratio (TTM)	73.83	3.77

Growth

The following charts compare key year-over-year (YoY) growth metrics for ACGL and ARCC. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ACGL vs. ARCC: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ACGL vs. ARCC: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ACGL vs. ARCC: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ACGL

5.61%

Insurance - Diversified Industry

Max: 8.16%
Q3: 5.54%
Median: 2.46%
Q1: 1.59%
Min: 0.00%

With a Dividend Yield of 5.61%, ACGL offers a more attractive income stream than most of its peers in the Insurance - Diversified industry, signaling a strong commitment to shareholder returns.

ARCC

8.57%

Asset Management Industry

Max: 26.09%
Q3: 11.60%
Median: 6.37%
Q1: 2.75%
Min: 0.00%

ARCC’s Dividend Yield of 8.57% is consistent with its peers in the Asset Management industry, providing a dividend return that is standard for its sector.

ACGL vs. ARCC: A comparison of their Dividend Yield against their respective Insurance - Diversified and Asset Management industry benchmarks.

Dividend Payout Ratio

ACGL

50.74%

Insurance - Diversified Industry

Max: 101.86%
Q3: 53.36%
Median: 21.69%
Q1: 5.33%
Min: 0.00%

ACGL’s Dividend Payout Ratio of 50.74% is within the typical range for the Insurance - Diversified industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ARCC

81.85%

Asset Management Industry

Max: 1,034.88%
Q3: 127.70%
Median: 75.15%
Q1: 34.21%
Min: 0.00%

ARCC’s Dividend Payout Ratio of 81.85% is within the typical range for the Asset Management industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ACGL vs. ARCC: A comparison of their Payout Ratio against their respective Insurance - Diversified and Asset Management industry benchmarks.

Dividend at a Glance

Symbol	ACGL	ARCC
Dividend Yield (TTM)	5.61%	8.57%
Dividend Payout Ratio (TTM)	50.74%	81.85%

Valuation

Price-to-Earnings Ratio

ACGL

9.19

Insurance - Diversified Industry

Max: 18.52
Q3: 16.13
Median: 13.33
Q1: 9.73
Min: 2.62

In the lower quartile for the Insurance - Diversified industry, ACGL’s P/E Ratio of 9.19 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

ARCC

10.53

Asset Management Industry

Max: 38.72
Q3: 23.40
Median: 11.45
Q1: 8.80
Min: 1.54

ARCC’s P/E Ratio of 10.53 is within the middle range for the Asset Management industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ACGL vs. ARCC: A comparison of their P/E Ratio against their respective Insurance - Diversified and Asset Management industry benchmarks.

Forward P/E to Growth Ratio

ACGL

1.15

Insurance - Diversified Industry

Max: 2.60
Q3: 2.07
Median: 1.20
Q1: 0.77
Min: 0.04

ACGL’s Forward PEG Ratio of 1.15 is within the middle range of its peers in the Insurance - Diversified industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

ARCC

-7.92

Asset Management Industry

Max: 6.38
Q3: 3.23
Median: 1.55
Q1: 0.89
Min: 0.02

ARCC has a negative Forward PEG Ratio of -7.92. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.

ACGL vs. ARCC: A comparison of their Forward PEG Ratio against their respective Insurance - Diversified and Asset Management industry benchmarks.

Price-to-Sales Ratio

ACGL

1.88

Insurance - Diversified Industry

Max: 3.08
Q3: 2.00
Median: 1.15
Q1: 1.07
Min: 0.38

ACGL’s P/S Ratio of 1.88 aligns with the market consensus for the Insurance - Diversified industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ARCC

7.30

Asset Management Industry

Max: 13.75
Q3: 7.92
Median: 4.87
Q1: 3.51
Min: 0.02

ARCC’s P/S Ratio of 7.30 aligns with the market consensus for the Asset Management 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 P/S Ratio against their respective Insurance - Diversified and Asset Management industry benchmarks.

Price-to-Book Ratio

ACGL

1.61

Insurance - Diversified Industry

Max: 2.12
Q3: 1.80
Median: 1.59
Q1: 1.29
Min: 0.74

ACGL’s P/B Ratio of 1.61 is within the conventional range for the Insurance - Diversified 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

1.11

Asset Management Industry

Max: 5.33
Q3: 2.75
Median: 1.06
Q1: 0.87
Min: 0.00

The P/B Ratio is often not a primary valuation metric for the Asset Management industry.

ACGL vs. ARCC: A comparison of their P/B Ratio against their respective Insurance - Diversified and Asset Management industry benchmarks.

Valuation at a Glance

Symbol	ACGL	ARCC
Price-to-Earnings Ratio (P/E, TTM)	9.19	10.53
Forward PEG Ratio (TTM)	1.15	-7.92
Price-to-Sales Ratio (P/S, TTM)	1.88	7.30
Price-to-Book Ratio (P/B, TTM)	1.61	1.11
Price-to-Free Cash Flow Ratio (P/FCF, TTM)	5.12	-6.47
EV-to-EBITDA (TTM)	8.67	8.15
EV-to-Sales (TTM)	1.97	7.00