ACGL vs. CNA: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ACGL and CNA, 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 CNA’s 12.36 billion USD, indicating a significant difference in their market valuations.
With betas of 0.52 for ACGL and 0.52 for CNA, both stocks show similar sensitivity to overall market movements.
| Symbol | ACGL | CNA |
|---|---|---|
| Company Name | Arch Capital Group Ltd. | CNA Financial Corporation |
| Country | BM | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Diversified | Insurance - Property & Casualty |
| CEO | Nicolas Alain Emmanuel Papadopoulo | Douglas Merle Worman |
| Price | 89.19 USD | 45.69 USD |
| Market Cap | 33.42 billion USD | 12.36 billion USD |
| Beta | 0.52 | 0.52 |
| Exchange | NASDAQ | NYSE |
| IPO Date | September 14, 1995 | February 3, 1969 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ACGL and CNA 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.
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.
CNA
8.64%
Insurance - Property & Casualty Industry
- Max
- 28.14%
- Q3
- 17.51%
- Median
- 12.75%
- Q1
- 8.26%
- Min
- 0.61%
CNA’s Return on Equity of 8.64% is on par with the norm for the Insurance - Property & Casualty industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
CNA
-39.52%
Insurance - Property & Casualty Industry
- Max
- 21.89%
- Q3
- 10.09%
- Median
- 3.90%
- Q1
- 0.89%
- Min
- -7.26%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Property & Casualty industry.
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.
CNA
6.23%
Insurance - Property & Casualty Industry
- Max
- 21.98%
- Q3
- 13.09%
- Median
- 9.18%
- Q1
- 6.10%
- Min
- 2.13%
CNA’s Net Profit Margin of 6.23% is aligned with the median group of its peers in the Insurance - Property & Casualty industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
CNA
5.91%
Insurance - Property & Casualty Industry
- Max
- 31.70%
- Q3
- 17.32%
- Median
- 12.57%
- Q1
- 7.38%
- Min
- 4.31%
CNA’s Operating Profit Margin of 5.91% is in the lower quartile for the Insurance - Property & Casualty industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | ACGL | CNA |
|---|---|---|
| Return on Equity (TTM) | 17.66% | 8.64% |
| Return on Assets (TTM) | 5.01% | 1.33% |
| Return on Invested Capital (TTM) | 9.46% | -39.52% |
| Net Profit Margin (TTM) | 21.23% | 6.23% |
| Operating Profit Margin (TTM) | 44.52% | 5.91% |
| Gross Profit Margin (TTM) | 98.20% | 94.85% |
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.
CNA
0.41
Insurance - Property & Casualty Industry
- Max
- 51.52
- Q3
- 30.84
- Median
- 20.50
- Q1
- 6.61
- Min
- 0.41
CNA’s Current Ratio of 0.41 falls into the lower quartile for the Insurance - Property & Casualty industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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.
CNA
0.29
Insurance - Property & Casualty Industry
- Max
- 0.58
- Q3
- 0.36
- Median
- 0.27
- Q1
- 0.14
- Min
- 0.01
CNA’s Debt-to-Equity Ratio of 0.29 is typical for the Insurance - Property & Casualty industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
CNA
6.54
Insurance - Property & Casualty Industry
- Max
- 39.40
- Q3
- 22.24
- Median
- 12.38
- Q1
- 6.68
- Min
- -12.40
In the lower quartile for the Insurance - Property & Casualty industry, CNA’s Interest Coverage Ratio of 6.54 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | ACGL | CNA |
|---|---|---|
| Current Ratio (TTM) | -- | 0.41 |
| Quick Ratio (TTM) | -- | 0.41 |
| Debt-to-Equity Ratio (TTM) | 0.13 | 0.29 |
| Debt-to-Asset Ratio (TTM) | 0.04 | 0.04 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.38 | 2.67 |
| Interest Coverage Ratio (TTM) | 73.83 | 6.54 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ACGL and CNA. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
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.
CNA
8.32%
Insurance - Property & Casualty Industry
- Max
- 8.17%
- Q3
- 3.10%
- Median
- 1.79%
- Q1
- 0.00%
- Min
- 0.00%
CNA’s Dividend Yield of 8.32% is exceptionally high, placing it well above the typical range for the Insurance - Property & Casualty industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
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.
CNA
115.20%
Insurance - Property & Casualty Industry
- Max
- 115.20%
- Q3
- 35.27%
- Median
- 22.19%
- Q1
- 3.16%
- Min
- 0.00%
CNA’s Dividend Payout Ratio of 115.20% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
Dividend at a Glance
| Symbol | ACGL | CNA |
|---|---|---|
| Dividend Yield (TTM) | 5.61% | 8.32% |
| Dividend Payout Ratio (TTM) | 50.74% | 115.20% |
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.
CNA
13.85
Insurance - Property & Casualty Industry
- Max
- 35.83
- Q3
- 23.28
- Median
- 14.49
- Q1
- 11.91
- Min
- 4.47
CNA’s P/E Ratio of 13.85 is within the middle range for the Insurance - Property & Casualty industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
CNA
-0.17
Insurance - Property & Casualty Industry
- Max
- 2.53
- Q3
- 1.90
- Median
- 1.33
- Q1
- 0.86
- Min
- 0.01
CNA has a negative Forward PEG Ratio of -0.17. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
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.
CNA
0.86
Insurance - Property & Casualty Industry
- Max
- 3.76
- Q3
- 2.39
- Median
- 1.80
- Q1
- 1.01
- Min
- 0.50
The P/S Ratio is often not a primary valuation tool in the Insurance - Property & Casualty industry.
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.
CNA
1.21
Insurance - Property & Casualty Industry
- Max
- 5.34
- Q3
- 2.95
- Median
- 1.92
- Q1
- 1.31
- Min
- 0.52
CNA’s P/B Ratio of 1.21 is in the lower quartile for the Insurance - Property & Casualty 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.
Valuation at a Glance
| Symbol | ACGL | CNA |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 9.19 | 13.85 |
| Forward PEG Ratio (TTM) | 1.15 | -0.17 |
| Price-to-Sales Ratio (P/S, TTM) | 1.88 | 0.86 |
| Price-to-Book Ratio (P/B, TTM) | 1.61 | 1.21 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 5.12 | 4.73 |
| EV-to-EBITDA (TTM) | 8.67 | 15.92 |
| EV-to-Sales (TTM) | 1.97 | 1.03 |