ACGL vs. PRU: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ACGL and PRU, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ACGL’s market capitalization stands at 33.42 billion USD, while PRU’s is 38.61 billion USD, indicating their market valuations are broadly comparable.
PRU carries a higher beta at 1.05, indicating it’s more sensitive to market moves, while ACGL (beta: 0.52) exhibits greater stability.
| Symbol | ACGL | PRU |
|---|---|---|
| Company Name | Arch Capital Group Ltd. | Prudential Financial, Inc. |
| Country | BM | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Diversified | Insurance - Life |
| CEO | Nicolas Alain Emmanuel Papadopoulo | Andrew Francis Sullivan |
| Price | 89.19 USD | 109.08 USD |
| Market Cap | 33.42 billion USD | 38.61 billion USD |
| Beta | 0.52 | 1.05 |
| Exchange | NASDAQ | NYSE |
| IPO Date | September 14, 1995 | December 13, 2001 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ACGL and PRU 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.
PRU
7.90%
Insurance - Life Industry
- Max
- 23.38%
- Q3
- 14.56%
- Median
- 11.23%
- Q1
- 1.67%
- Min
- -5.23%
PRU’s Return on Equity of 7.90% is on par with the norm for the Insurance - Life 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.
PRU
0.32%
Insurance - Life Industry
- Max
- 6.30%
- Q3
- 3.33%
- Median
- 2.16%
- Q1
- 0.68%
- Min
- -0.10%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Life 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.
PRU
3.79%
Insurance - Life Industry
- Max
- 21.20%
- Q3
- 11.59%
- Median
- 7.10%
- Q1
- 3.79%
- Min
- 2.14%
Falling into the lower quartile for the Insurance - Life industry, PRU’s Net Profit Margin of 3.79% 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.
PRU
4.52%
Insurance - Life Industry
- Max
- 38.96%
- Q3
- 37.28%
- Median
- 14.06%
- Q1
- 8.95%
- Min
- -1.68%
In the Insurance - Life industry, Operating Profit Margin is often not the primary measure of operational efficiency.
Profitability at a Glance
| Symbol | ACGL | PRU |
|---|---|---|
| Return on Equity (TTM) | 17.66% | 7.90% |
| Return on Assets (TTM) | 5.01% | 0.31% |
| Return on Invested Capital (TTM) | 9.46% | 0.32% |
| Net Profit Margin (TTM) | 21.23% | 3.79% |
| Operating Profit Margin (TTM) | 44.52% | 4.52% |
| Gross Profit Margin (TTM) | 98.20% | 27.02% |
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.
PRU
6.06
Insurance - Life Industry
- Max
- 843.97
- Q3
- 821.68
- Median
- 6.06
- Q1
- 3.15
- Min
- 0.47
PRU’s Current Ratio of 6.06 aligns with the median group of the Insurance - Life 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.
PRU
0.75
Insurance - Life Industry
- Max
- 0.86
- Q3
- 0.83
- Median
- 0.55
- Q1
- 0.37
- Min
- 0.27
PRU’s Debt-to-Equity Ratio of 0.75 is typical for the Insurance - Life 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.
PRU
--
Insurance - Life Industry
- Max
- 37.82
- Q3
- 19.50
- Median
- 6.25
- Q1
- 2.29
- Min
- -0.76
Interest Coverage Ratio data for PRU is currently unavailable.
Financial Strength at a Glance
| Symbol | ACGL | PRU |
|---|---|---|
| Current Ratio (TTM) | -- | 6.06 |
| Quick Ratio (TTM) | -- | 6.06 |
| Debt-to-Equity Ratio (TTM) | 0.13 | 0.75 |
| Debt-to-Asset Ratio (TTM) | 0.04 | 0.03 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.38 | 2.47 |
| Interest Coverage Ratio (TTM) | 73.83 | -- |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ACGL and PRU. 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.
PRU
4.86%
Insurance - Life Industry
- Max
- 10.36%
- Q3
- 4.76%
- Median
- 2.40%
- Q1
- 1.51%
- Min
- 0.00%
With a Dividend Yield of 4.86%, PRU offers a more attractive income stream than most of its peers in the Insurance - Life 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.
PRU
82.71%
Insurance - Life Industry
- Max
- 203.94%
- Q3
- 64.38%
- Median
- 29.88%
- Q1
- 19.14%
- Min
- 0.00%
PRU’s Dividend Payout Ratio of 82.71% is in the upper quartile for the Insurance - Life 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 | PRU |
|---|---|---|
| Dividend Yield (TTM) | 5.61% | 4.86% |
| Dividend Payout Ratio (TTM) | 50.74% | 82.71% |
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.
PRU
16.83
Insurance - Life Industry
- Max
- 17.82
- Q3
- 16.08
- Median
- 12.43
- Q1
- 7.33
- Min
- 3.69
A P/E Ratio of 16.83 places PRU in the upper quartile for the Insurance - Life industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
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.
PRU
2.22
Insurance - Life Industry
- Max
- 3.81
- Q3
- 1.95
- Median
- 0.97
- Q1
- 0.53
- Min
- 0.24
A Forward PEG Ratio of 2.22 places PRU in the upper quartile for the Insurance - Life 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.
PRU
0.64
Insurance - Life Industry
- Max
- 3.84
- Q3
- 2.89
- Median
- 1.06
- Q1
- 0.63
- Min
- 0.31
PRU’s P/S Ratio of 0.64 aligns with the market consensus for the Insurance - Life 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.
PRU
1.29
Insurance - Life Industry
- Max
- 3.87
- Q3
- 2.13
- Median
- 1.49
- Q1
- 0.95
- Min
- 0.38
PRU’s P/B Ratio of 1.29 is within the conventional range for the Insurance - Life 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.
Valuation at a Glance
| Symbol | ACGL | PRU |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 9.19 | 16.83 |
| Forward PEG Ratio (TTM) | 1.15 | 2.22 |
| Price-to-Sales Ratio (P/S, TTM) | 1.88 | 0.64 |
| Price-to-Book Ratio (P/B, TTM) | 1.61 | 1.29 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 5.12 | 49.82 |
| EV-to-EBITDA (TTM) | 8.67 | 17.53 |
| EV-to-Sales (TTM) | 1.97 | 0.74 |