ACGL vs. TRV: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ACGL and TRV, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
TRV’s market capitalization of 59.84 billion USD is significantly greater than ACGL’s 33.42 billion USD, highlighting its more substantial market valuation.
With betas of 0.52 for ACGL and 0.54 for TRV, both stocks show similar sensitivity to overall market movements.
| Symbol | ACGL | TRV |
|---|---|---|
| Company Name | Arch Capital Group Ltd. | The Travelers Companies, Inc. |
| Country | BM | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Diversified | Insurance - Property & Casualty |
| CEO | Nicolas Alain Emmanuel Papadopoulo | Alan David Schnitzer |
| Price | 89.19 USD | 264.13 USD |
| Market Cap | 33.42 billion USD | 59.84 billion USD |
| Beta | 0.52 | 0.54 |
| Exchange | NASDAQ | NYSE |
| IPO Date | September 14, 1995 | November 17, 1975 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ACGL and TRV 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.
TRV
15.73%
Insurance - Property & Casualty Industry
- Max
- 28.14%
- Q3
- 17.51%
- Median
- 12.75%
- Q1
- 8.26%
- Min
- 0.61%
TRV’s Return on Equity of 15.73% is on par with the norm for the Insurance - Property & Casualty 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.
TRV
2.35%
Insurance - Property & Casualty Industry
- Max
- 21.89%
- Q3
- 10.09%
- Median
- 3.90%
- Q1
- 0.89%
- Min
- -7.26%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Property & Casualty 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.
TRV
9.09%
Insurance - Property & Casualty Industry
- Max
- 21.98%
- Q3
- 13.09%
- Median
- 9.18%
- Q1
- 6.10%
- Min
- 2.13%
TRV’s Net Profit Margin of 9.09% is aligned with the median group of its peers in the Insurance - Property & Casualty 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.
TRV
8.12%
Insurance - Property & Casualty Industry
- Max
- 31.70%
- Q3
- 17.32%
- Median
- 12.57%
- Q1
- 7.38%
- Min
- 4.31%
TRV’s Operating Profit Margin of 8.12% is around the midpoint for the Insurance - Property & Casualty industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ACGL | TRV |
|---|---|---|
| Return on Equity (TTM) | 17.66% | 15.73% |
| Return on Assets (TTM) | 5.01% | 3.14% |
| Return on Invested Capital (TTM) | 9.46% | 2.35% |
| Net Profit Margin (TTM) | 21.23% | 9.09% |
| Operating Profit Margin (TTM) | 44.52% | 8.12% |
| Gross Profit Margin (TTM) | 98.20% | 100.22% |
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.
TRV
26.20
Insurance - Property & Casualty Industry
- Max
- 51.52
- Q3
- 30.84
- Median
- 20.50
- Q1
- 6.61
- Min
- 0.41
TRV’s Current Ratio of 26.20 aligns with the median group of the Insurance - Property & Casualty 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.
TRV
0.28
Insurance - Property & Casualty Industry
- Max
- 0.58
- Q3
- 0.36
- Median
- 0.27
- Q1
- 0.14
- Min
- 0.01
TRV’s Debt-to-Equity Ratio of 0.28 is typical for the Insurance - Property & Casualty 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.
TRV
9.71
Insurance - Property & Casualty Industry
- Max
- 39.40
- Q3
- 22.24
- Median
- 12.38
- Q1
- 6.68
- Min
- -12.40
TRV’s Interest Coverage Ratio of 9.71 is positioned comfortably within the norm for the Insurance - Property & Casualty industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ACGL | TRV |
|---|---|---|
| Current Ratio (TTM) | -- | 26.20 |
| Quick Ratio (TTM) | -- | 26.20 |
| Debt-to-Equity Ratio (TTM) | 0.13 | 0.28 |
| Debt-to-Asset Ratio (TTM) | 0.04 | 0.06 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.38 | 0.50 |
| Interest Coverage Ratio (TTM) | 73.83 | 9.71 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ACGL and TRV. 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.
TRV
1.61%
Insurance - Property & Casualty Industry
- Max
- 8.17%
- Q3
- 3.10%
- Median
- 1.79%
- Q1
- 0.00%
- Min
- 0.00%
TRV’s Dividend Yield of 1.61% is consistent with its peers in the Insurance - Property & Casualty 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.
TRV
22.52%
Insurance - Property & Casualty Industry
- Max
- 115.20%
- Q3
- 35.27%
- Median
- 22.19%
- Q1
- 3.16%
- Min
- 0.00%
TRV’s Dividend Payout Ratio of 22.52% is within the typical range for the Insurance - Property & Casualty industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ACGL | TRV |
|---|---|---|
| Dividend Yield (TTM) | 5.61% | 1.61% |
| Dividend Payout Ratio (TTM) | 50.74% | 22.52% |
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.
TRV
14.03
Insurance - Property & Casualty Industry
- Max
- 35.83
- Q3
- 23.28
- Median
- 14.49
- Q1
- 11.91
- Min
- 4.47
TRV’s P/E Ratio of 14.03 is within the middle range for the Insurance - Property & Casualty 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.
TRV
0.70
Insurance - Property & Casualty Industry
- Max
- 2.53
- Q3
- 1.90
- Median
- 1.33
- Q1
- 0.86
- Min
- 0.01
In the lower quartile for the Insurance - Property & Casualty industry, TRV’s Forward PEG Ratio of 0.70 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
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.
TRV
1.27
Insurance - Property & Casualty Industry
- Max
- 3.76
- Q3
- 2.39
- Median
- 1.80
- Q1
- 1.01
- Min
- 0.50
The P/S Ratio is often not a primary valuation tool in the Insurance - Property & Casualty industry.
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.
TRV
2.13
Insurance - Property & Casualty Industry
- Max
- 5.34
- Q3
- 2.95
- Median
- 1.92
- Q1
- 1.31
- Min
- 0.52
TRV’s P/B Ratio of 2.13 is within the conventional range for the Insurance - Property & Casualty 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 | TRV |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 9.19 | 14.03 |
| Forward PEG Ratio (TTM) | 1.15 | 0.70 |
| Price-to-Sales Ratio (P/S, TTM) | 1.88 | 1.27 |
| Price-to-Book Ratio (P/B, TTM) | 1.61 | 2.13 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 5.12 | 6.67 |
| EV-to-EBITDA (TTM) | 8.67 | 4.63 |
| EV-to-Sales (TTM) | 1.97 | 1.43 |