ACGL vs. ERIE: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ACGL and ERIE, 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 ERIE’s 16.02 billion USD, indicating a significant difference in their market valuations.
With betas of 0.52 for ACGL and 0.36 for ERIE, both stocks show similar sensitivity to overall market movements.
| Symbol | ACGL | ERIE |
|---|---|---|
| Company Name | Arch Capital Group Ltd. | Erie Indemnity Company |
| Country | BM | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Diversified | Insurance - Brokers |
| CEO | Nicolas Alain Emmanuel Papadopoulo | Timothy Gerard NeCastro C.I.C., CPA |
| Price | 89.19 USD | 346.94 USD |
| Market Cap | 33.42 billion USD | 16.02 billion USD |
| Beta | 0.52 | 0.36 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | September 14, 1995 | October 2, 1995 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ACGL and ERIE 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.
ERIE
31.37%
Insurance - Brokers Industry
- Max
- 40.40%
- Q3
- 30.52%
- Median
- 22.48%
- Q1
- 4.38%
- Min
- -5.38%
In the upper quartile for the Insurance - Brokers industry, ERIE’s Return on Equity of 31.37% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
ERIE
26.02%
Insurance - Brokers Industry
- Max
- 11.62%
- Q3
- 11.18%
- Median
- 8.38%
- Q1
- 2.57%
- Min
- -1.51%
ERIE’s Return on Invested Capital of 26.02% is exceptionally high, placing it well beyond the typical range for the Insurance - Brokers industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
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.
ERIE
18.52%
Insurance - Brokers Industry
- Max
- 21.33%
- Q3
- 15.86%
- Median
- 10.63%
- Q1
- 1.06%
- Min
- -2.28%
A Net Profit Margin of 18.52% places ERIE in the upper quartile for the Insurance - Brokers industry, signifying strong profitability and more effective cost management than most of its peers.
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.
ERIE
21.46%
Insurance - Brokers Industry
- Max
- 28.73%
- Q3
- 23.24%
- Median
- 21.46%
- Q1
- 10.89%
- Min
- 5.35%
ERIE’s Operating Profit Margin of 21.46% is around the midpoint for the Insurance - Brokers industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ACGL | ERIE |
|---|---|---|
| Return on Equity (TTM) | 17.66% | 31.37% |
| Return on Assets (TTM) | 5.01% | 20.69% |
| Return on Invested Capital (TTM) | 9.46% | 26.02% |
| Net Profit Margin (TTM) | 21.23% | 18.52% |
| Operating Profit Margin (TTM) | 44.52% | 21.46% |
| Gross Profit Margin (TTM) | 98.20% | 51.14% |
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.
ERIE
1.38
Insurance - Brokers Industry
- Max
- 1.90
- Q3
- 1.76
- Median
- 1.29
- Q1
- 1.14
- Min
- 1.05
ERIE’s Current Ratio of 1.38 aligns with the median group of the Insurance - Brokers industry, indicating that its short-term liquidity is in line with its sector peers.
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.
ERIE
0.01
Insurance - Brokers Industry
- Max
- 4.59
- Q3
- 2.12
- Median
- 0.59
- Q1
- 0.07
- Min
- 0.01
Falling into the lower quartile for the Insurance - Brokers industry, ERIE’s Debt-to-Equity Ratio of 0.01 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
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.
ERIE
--
Insurance - Brokers Industry
- Max
- 29.40
- Q3
- 16.65
- Median
- 7.25
- Q1
- 4.20
- Min
- 1.60
Interest Coverage Ratio data for ERIE is currently unavailable.
Financial Strength at a Glance
| Symbol | ACGL | ERIE |
|---|---|---|
| Current Ratio (TTM) | -- | 1.38 |
| Quick Ratio (TTM) | -- | 1.38 |
| Debt-to-Equity Ratio (TTM) | 0.13 | 0.01 |
| Debt-to-Asset Ratio (TTM) | 0.04 | 0.00 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.38 | -0.42 |
| Interest Coverage Ratio (TTM) | 73.83 | -- |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ACGL and ERIE. 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.
ERIE
1.52%
Insurance - Brokers Industry
- Max
- 2.63%
- Q3
- 1.34%
- Median
- 0.79%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.52%, ERIE offers a more attractive income stream than most of its peers in the Insurance - Brokers industry, signaling a strong commitment to shareholder returns.
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.
ERIE
39.35%
Insurance - Brokers Industry
- Max
- 45.22%
- Q3
- 39.19%
- Median
- 29.49%
- Q1
- 3.85%
- Min
- 0.00%
ERIE’s Dividend Payout Ratio of 39.35% is in the upper quartile for the Insurance - Brokers industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ACGL | ERIE |
|---|---|---|
| Dividend Yield (TTM) | 5.61% | 1.52% |
| Dividend Payout Ratio (TTM) | 50.74% | 39.35% |
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.
ERIE
29.54
Insurance - Brokers Industry
- Max
- 45.50
- Q3
- 35.20
- Median
- 30.00
- Q1
- 28.34
- Min
- 26.42
ERIE’s P/E Ratio of 29.54 is within the middle range for the Insurance - Brokers 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.
ERIE
2.94
Insurance - Brokers Industry
- Max
- 3.32
- Q3
- 3.00
- Median
- 2.77
- Q1
- 2.41
- Min
- 2.09
ERIE’s Forward PEG Ratio of 2.94 is within the middle range of its peers in the Insurance - Brokers industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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.
ERIE
4.83
Insurance - Brokers Industry
- Max
- 7.38
- Q3
- 5.34
- Median
- 4.27
- Q1
- 2.32
- Min
- 0.27
ERIE’s P/S Ratio of 4.83 aligns with the market consensus for the Insurance - Brokers industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
ERIE
8.78
Insurance - Brokers Industry
- Max
- 10.90
- Q3
- 8.10
- Median
- 6.93
- Q1
- 4.15
- Min
- 1.12
ERIE’s P/B Ratio of 8.78 is in the upper tier for the Insurance - Brokers industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | ACGL | ERIE |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 9.19 | 29.54 |
| Forward PEG Ratio (TTM) | 1.15 | 2.94 |
| Price-to-Sales Ratio (P/S, TTM) | 1.88 | 4.83 |
| Price-to-Book Ratio (P/B, TTM) | 1.61 | 8.78 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 5.12 | 31.42 |
| EV-to-EBITDA (TTM) | 8.67 | 30.09 |
| EV-to-Sales (TTM) | 1.97 | 4.77 |