ACGL vs. STT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ACGL and STT, 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 STT’s is 31.46 billion USD, indicating their market valuations are broadly comparable.
STT carries a higher beta at 1.46, indicating it’s more sensitive to market moves, while ACGL (beta: 0.52) exhibits greater stability.
| Symbol | ACGL | STT |
|---|---|---|
| Company Name | Arch Capital Group Ltd. | State Street Corporation |
| Country | BM | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Diversified | Asset Management |
| CEO | Nicolas Alain Emmanuel Papadopoulo | Ronald Philip O'Hanley |
| Price | 89.19 USD | 110.31 USD |
| Market Cap | 33.42 billion USD | 31.46 billion USD |
| Beta | 0.52 | 1.46 |
| Exchange | NASDAQ | NYSE |
| IPO Date | September 14, 1995 | March 17, 1980 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ACGL and STT 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.
STT
11.18%
Asset Management Industry
- Max
- 34.25%
- Q3
- 18.22%
- Median
- 11.24%
- Q1
- 5.81%
- Min
- -5.72%
STT’s Return on Equity of 11.18% is on par with the norm for the Asset Management 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.
STT
-16.42%
Asset Management Industry
- Max
- 42.18%
- Q3
- 20.06%
- Median
- 8.68%
- Q1
- 3.13%
- Min
- -16.42%
STT has a negative Return on Invested Capital of -16.42%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
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.
STT
12.95%
Asset Management Industry
- Max
- 91.66%
- Q3
- 57.81%
- Median
- 29.48%
- Q1
- 15.70%
- Min
- -27.65%
Falling into the lower quartile for the Asset Management industry, STT’s Net Profit Margin of 12.95% 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.
STT
16.34%
Asset Management Industry
- Max
- 99.76%
- Q3
- 78.28%
- Median
- 34.76%
- Q1
- 21.75%
- Min
- -48.25%
STT’s Operating Profit Margin of 16.34% is in the lower quartile for the Asset Management industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | ACGL | STT |
|---|---|---|
| Return on Equity (TTM) | 17.66% | 11.18% |
| Return on Assets (TTM) | 5.01% | 0.77% |
| Return on Invested Capital (TTM) | 9.46% | -16.42% |
| Net Profit Margin (TTM) | 21.23% | 12.95% |
| Operating Profit Margin (TTM) | 44.52% | 16.34% |
| Gross Profit Margin (TTM) | 98.20% | 58.70% |
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.
STT
0.14
Asset Management Industry
- Max
- 12.44
- Q3
- 5.76
- Median
- 3.04
- Q1
- 1.03
- Min
- 0.01
STT’s Current Ratio of 0.14 falls into the lower quartile for the Asset Management 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.
STT
1.37
Asset Management Industry
- Max
- 2.62
- Q3
- 1.42
- Median
- 0.76
- Q1
- 0.34
- Min
- 0.01
STT’s Debt-to-Equity Ratio of 1.37 is typical for the Asset Management 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.
STT
0.40
Asset Management Industry
- Max
- 13.30
- Q3
- 6.30
- Median
- 2.71
- Q1
- 1.00
- Min
- -6.91
STT’s Interest Coverage Ratio of 0.40 is a critical concern. A value below 1.0 means operating earnings are insufficient to cover interest expenses, indicating severe financial strain and high default risk.
Financial Strength at a Glance
| Symbol | ACGL | STT |
|---|---|---|
| Current Ratio (TTM) | -- | 0.14 |
| Quick Ratio (TTM) | -- | 0.14 |
| Debt-to-Equity Ratio (TTM) | 0.13 | 1.37 |
| Debt-to-Asset Ratio (TTM) | 0.04 | 0.10 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.38 | 7.76 |
| Interest Coverage Ratio (TTM) | 73.83 | 0.40 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ACGL and STT. 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.
STT
2.76%
Asset Management Industry
- Max
- 26.09%
- Q3
- 11.60%
- Median
- 6.37%
- Q1
- 2.75%
- Min
- 0.00%
STT’s Dividend Yield of 2.76% is consistent with its peers in the Asset Management industry, providing a dividend return that is standard for its sector.
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.
STT
36.82%
Asset Management Industry
- Max
- 1,034.88%
- Q3
- 127.70%
- Median
- 75.15%
- Q1
- 34.21%
- Min
- 0.00%
STT’s Dividend Payout Ratio of 36.82% is within the typical range for the Asset Management industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ACGL | STT |
|---|---|---|
| Dividend Yield (TTM) | 5.61% | 2.76% |
| Dividend Payout Ratio (TTM) | 50.74% | 36.82% |
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.
STT
11.10
Asset Management Industry
- Max
- 38.72
- Q3
- 23.40
- Median
- 11.45
- Q1
- 8.80
- Min
- 1.54
STT’s P/E Ratio of 11.10 is within the middle range for the Asset Management 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.
STT
0.92
Asset Management Industry
- Max
- 6.38
- Q3
- 3.23
- Median
- 1.55
- Q1
- 0.89
- Min
- 0.02
STT’s Forward PEG Ratio of 0.92 is within the middle range of its peers in the Asset Management 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.
STT
1.42
Asset Management Industry
- Max
- 13.75
- Q3
- 7.92
- Median
- 4.87
- Q1
- 3.51
- Min
- 0.02
In the lower quartile for the Asset Management industry, STT’s P/S Ratio of 1.42 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.
STT
1.19
Asset Management Industry
- Max
- 5.33
- Q3
- 2.75
- Median
- 1.06
- Q1
- 0.87
- Min
- 0.00
The P/B Ratio is often not a primary valuation metric for the Asset Management industry.
Valuation at a Glance
| Symbol | ACGL | STT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 9.19 | 11.10 |
| Forward PEG Ratio (TTM) | 1.15 | 0.92 |
| Price-to-Sales Ratio (P/S, TTM) | 1.88 | 1.42 |
| Price-to-Book Ratio (P/B, TTM) | 1.61 | 1.19 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 5.12 | -7.20 |
| EV-to-EBITDA (TTM) | 8.67 | 15.37 |
| EV-to-Sales (TTM) | 1.97 | 2.87 |