ACGL vs. MORN: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ACGL and MORN, 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 MORN’s 13.15 billion USD, indicating a significant difference in their market valuations.
MORN carries a higher beta at 1.03, indicating it’s more sensitive to market moves, while ACGL (beta: 0.52) exhibits greater stability.
| Symbol | ACGL | MORN |
|---|---|---|
| Company Name | Arch Capital Group Ltd. | Morningstar, Inc. |
| Country | BM | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Diversified | Financial - Data & Stock Exchanges |
| CEO | Nicolas Alain Emmanuel Papadopoulo | Kunal Kapoor CFA |
| Price | 89.19 USD | 311.29 USD |
| Market Cap | 33.42 billion USD | 13.15 billion USD |
| Beta | 0.52 | 1.03 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | September 14, 1995 | May 3, 2005 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ACGL and MORN 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.
MORN
24.68%
Financial - Data & Stock Exchanges Industry
- Max
- 26.26%
- Q3
- 23.14%
- Median
- 14.33%
- Q1
- 11.12%
- Min
- -0.64%
In the upper quartile for the Financial - Data & Stock Exchanges industry, MORN’s Return on Equity of 24.68% 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.
MORN
14.84%
Financial - Data & Stock Exchanges Industry
- Max
- 18.31%
- Q3
- 14.86%
- Median
- 11.07%
- Q1
- 6.75%
- Min
- 4.04%
MORN’s Return on Invested Capital of 14.84% is in line with the norm for the Financial - Data & Stock Exchanges industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
MORN
16.61%
Financial - Data & Stock Exchanges Industry
- Max
- 39.08%
- Q3
- 31.63%
- Median
- 23.20%
- Q1
- 18.09%
- Min
- -0.88%
Falling into the lower quartile for the Financial - Data & Stock Exchanges industry, MORN’s Net Profit Margin of 16.61% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
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.
MORN
22.05%
Financial - Data & Stock Exchanges Industry
- Max
- 53.68%
- Q3
- 40.45%
- Median
- 31.81%
- Q1
- 24.66%
- Min
- 9.71%
MORN’s Operating Profit Margin of 22.05% is in the lower quartile for the Financial - Data & Stock Exchanges industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | ACGL | MORN |
|---|---|---|
| Return on Equity (TTM) | 17.66% | 24.68% |
| Return on Assets (TTM) | 5.01% | 10.71% |
| Return on Invested Capital (TTM) | 9.46% | 14.84% |
| Net Profit Margin (TTM) | 21.23% | 16.61% |
| Operating Profit Margin (TTM) | 44.52% | 22.05% |
| Gross Profit Margin (TTM) | 98.20% | 58.57% |
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.
MORN
1.11
Financial - Data & Stock Exchanges Industry
- Max
- 1.60
- Q3
- 1.57
- Median
- 1.06
- Q1
- 0.96
- Min
- 0.62
MORN’s Current Ratio of 1.11 aligns with the median group of the Financial - Data & Stock Exchanges 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.
MORN
0.62
Financial - Data & Stock Exchanges Industry
- Max
- 1.09
- Q3
- 0.80
- Median
- 0.62
- Q1
- 0.36
- Min
- 0.04
MORN’s Debt-to-Equity Ratio of 0.62 is typical for the Financial - Data & Stock Exchanges 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.
MORN
14.20
Financial - Data & Stock Exchanges Industry
- Max
- 27.44
- Q3
- 22.05
- Median
- 10.08
- Q1
- 6.79
- Min
- 1.01
MORN’s Interest Coverage Ratio of 14.20 is positioned comfortably within the norm for the Financial - Data & Stock Exchanges industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ACGL | MORN |
|---|---|---|
| Current Ratio (TTM) | -- | 1.11 |
| Quick Ratio (TTM) | -- | 1.11 |
| Debt-to-Equity Ratio (TTM) | 0.13 | 0.62 |
| Debt-to-Asset Ratio (TTM) | 0.04 | 0.28 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.38 | 0.66 |
| Interest Coverage Ratio (TTM) | 73.83 | 14.20 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ACGL and MORN. 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.
MORN
0.55%
Financial - Data & Stock Exchanges Industry
- Max
- 3.86%
- Q3
- 1.44%
- Median
- 1.06%
- Q1
- 0.73%
- Min
- 0.00%
MORN’s Dividend Yield of 0.55% is in the lower quartile for the Financial - Data & Stock Exchanges industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
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.
MORN
18.61%
Financial - Data & Stock Exchanges Industry
- Max
- 106.40%
- Q3
- 44.44%
- Median
- 31.97%
- Q1
- 29.26%
- Min
- 0.00%
MORN’s Dividend Payout Ratio of 18.61% is in the lower quartile for the Financial - Data & Stock Exchanges industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
Dividend at a Glance
| Symbol | ACGL | MORN |
|---|---|---|
| Dividend Yield (TTM) | 5.61% | 0.55% |
| Dividend Payout Ratio (TTM) | 50.74% | 18.61% |
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.
MORN
34.68
Financial - Data & Stock Exchanges Industry
- Max
- 41.71
- Q3
- 40.17
- Median
- 37.47
- Q1
- 30.61
- Min
- 16.74
MORN’s P/E Ratio of 34.68 is within the middle range for the Financial - Data & Stock Exchanges 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.
MORN
2.34
Financial - Data & Stock Exchanges Industry
- Max
- 4.54
- Q3
- 4.09
- Median
- 4.06
- Q1
- 3.33
- Min
- 2.36
MORN’s Forward PEG Ratio of 2.34 is below the typical range for the Financial - Data & Stock Exchanges industry. This is a strong indicator that the stock may be undervalued, as its price appears low given its future growth prospects.
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.
MORN
5.69
Financial - Data & Stock Exchanges Industry
- Max
- 15.75
- Q3
- 12.42
- Median
- 9.37
- Q1
- 6.34
- Min
- 1.69
In the lower quartile for the Financial - Data & Stock Exchanges industry, MORN’s P/S Ratio of 5.69 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
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.
MORN
8.28
Financial - Data & Stock Exchanges Industry
- Max
- 8.57
- Q3
- 8.05
- Median
- 4.77
- Q1
- 3.69
- Min
- 1.19
MORN’s P/B Ratio of 8.28 is in the upper tier for the Financial - Data & Stock Exchanges 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 | MORN |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 9.19 | 34.68 |
| Forward PEG Ratio (TTM) | 1.15 | 2.34 |
| Price-to-Sales Ratio (P/S, TTM) | 1.88 | 5.69 |
| Price-to-Book Ratio (P/B, TTM) | 1.61 | 8.28 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 5.12 | 29.34 |
| EV-to-EBITDA (TTM) | 8.67 | 18.45 |
| EV-to-Sales (TTM) | 1.97 | 5.90 |