ACGL vs. GSHD: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ACGL and GSHD, 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 GSHD’s 3.92 billion USD, indicating a significant difference in their market valuations.
GSHD carries a higher beta at 1.44, indicating it’s more sensitive to market moves, while ACGL (beta: 0.52) exhibits greater stability.
| Symbol | ACGL | GSHD |
|---|---|---|
| Company Name | Arch Capital Group Ltd. | Goosehead Insurance, Inc |
| Country | BM | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Diversified | Insurance - Diversified |
| CEO | Nicolas Alain Emmanuel Papadopoulo | Mark K. Miller CPA |
| Price | 89.19 USD | 104.495 USD |
| Market Cap | 33.42 billion USD | 3.92 billion USD |
| Beta | 0.52 | 1.44 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | September 14, 1995 | April 27, 2018 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ACGL and GSHD 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.
GSHD
231.60%
Insurance - Diversified Industry
- Max
- 19.59%
- Q3
- 17.66%
- Median
- 12.77%
- Q1
- 7.56%
- Min
- -4.43%
GSHD’s Return on Equity of 231.60% is exceptionally high, placing it well beyond the typical range for the Insurance - Diversified industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
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.
GSHD
16.21%
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.
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.
GSHD
9.51%
Insurance - Diversified Industry
- Max
- 26.00%
- Q3
- 19.46%
- Median
- 9.37%
- Q1
- 5.55%
- Min
- -7.05%
GSHD’s Net Profit Margin of 9.51% is aligned with the median group of its peers in the Insurance - Diversified 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.
GSHD
20.36%
Insurance - Diversified Industry
- Max
- 44.52%
- Q3
- 25.84%
- Median
- 14.16%
- Q1
- 6.78%
- Min
- -2.60%
GSHD’s Operating Profit Margin of 20.36% is around the midpoint for the Insurance - Diversified industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ACGL | GSHD |
|---|---|---|
| Return on Equity (TTM) | 17.66% | 231.60% |
| Return on Assets (TTM) | 5.01% | 7.50% |
| Return on Invested Capital (TTM) | 9.46% | 16.21% |
| Net Profit Margin (TTM) | 21.23% | 9.51% |
| Operating Profit Margin (TTM) | 44.52% | 20.36% |
| Gross Profit Margin (TTM) | 98.20% | 44.98% |
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.
GSHD
2.82
Insurance - Diversified Industry
- Max
- 4.41
- Q3
- 4.03
- Median
- 2.86
- Q1
- 2.82
- Min
- 2.82
GSHD’s Current Ratio of 2.82 falls into the lower quartile for the Insurance - Diversified 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.
GSHD
-3.98
Insurance - Diversified Industry
- Max
- 0.54
- Q3
- 0.39
- Median
- 0.27
- Q1
- 0.21
- Min
- 0.13
GSHD has a Debt-to-Equity Ratio of -3.98, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.
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.
GSHD
5.68
Insurance - Diversified Industry
- Max
- 19.23
- Q3
- 17.46
- Median
- 7.97
- Q1
- 4.61
- Min
- -1.63
GSHD’s Interest Coverage Ratio of 5.68 is positioned comfortably within the norm for the Insurance - Diversified industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ACGL | GSHD |
|---|---|---|
| Current Ratio (TTM) | -- | 2.82 |
| Quick Ratio (TTM) | -- | 2.82 |
| Debt-to-Equity Ratio (TTM) | 0.13 | -3.98 |
| Debt-to-Asset Ratio (TTM) | 0.04 | 0.85 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.38 | 3.73 |
| Interest Coverage Ratio (TTM) | 73.83 | 5.68 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ACGL and GSHD. 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.
GSHD
5.66%
Insurance - Diversified Industry
- Max
- 8.16%
- Q3
- 5.54%
- Median
- 2.46%
- Q1
- 1.59%
- Min
- 0.00%
With a Dividend Yield of 5.66%, GSHD offers a more attractive income stream than most of its peers in the Insurance - Diversified 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.
GSHD
14.31%
Insurance - Diversified Industry
- Max
- 101.86%
- Q3
- 53.36%
- Median
- 21.69%
- Q1
- 5.33%
- Min
- 0.00%
GSHD’s Dividend Payout Ratio of 14.31% is within the typical range for the Insurance - Diversified industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ACGL | GSHD |
|---|---|---|
| Dividend Yield (TTM) | 5.61% | 5.66% |
| Dividend Payout Ratio (TTM) | 50.74% | 14.31% |
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.
GSHD
83.69
Insurance - Diversified Industry
- Max
- 18.52
- Q3
- 16.13
- Median
- 13.33
- Q1
- 9.73
- Min
- 2.62
At 83.69, GSHD’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Insurance - Diversified industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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.
GSHD
2.60
Insurance - Diversified Industry
- Max
- 2.60
- Q3
- 2.07
- Median
- 1.20
- Q1
- 0.77
- Min
- 0.04
A Forward PEG Ratio of 2.60 places GSHD in the upper quartile for the Insurance - Diversified industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
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.
GSHD
18.41
Insurance - Diversified Industry
- Max
- 3.08
- Q3
- 2.00
- Median
- 1.15
- Q1
- 1.07
- Min
- 0.38
With a P/S Ratio of 18.41, GSHD trades at a valuation that eclipses even the highest in the Insurance - Diversified industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
GSHD
-29.26
Insurance - Diversified Industry
- Max
- 2.12
- Q3
- 1.80
- Median
- 1.59
- Q1
- 1.29
- Min
- 0.74
GSHD has a negative P/B Ratio of -29.26, indicating its liabilities exceed its assets and result in negative shareholder equity. This is a critical warning sign of financial distress.
Valuation at a Glance
| Symbol | ACGL | GSHD |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 9.19 | 83.69 |
| Forward PEG Ratio (TTM) | 1.15 | 2.60 |
| Price-to-Sales Ratio (P/S, TTM) | 1.88 | 18.41 |
| Price-to-Book Ratio (P/B, TTM) | 1.61 | -29.26 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 5.12 | 91.95 |
| EV-to-EBITDA (TTM) | 8.67 | 82.95 |
| EV-to-Sales (TTM) | 1.97 | 19.27 |