Arch Capital Group (NASDAQ: ACGL) is one of 92 publicly-traded companies in the “Property & Casualty Insurance” industry, but how does it contrast to its competitors? We will compare Arch Capital Group to similar businesses based on the strength of its analyst recommendations, profitability, earnings, risk, dividends, valuation and institutional ownership.

Risk and Volatility

Arch Capital Group has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Arch Capital Group’s competitors have a beta of 0.93, meaning that their average share price is 7% less volatile than the S&P 500.

Institutional and Insider Ownership

76.9% of Arch Capital Group shares are held by institutional investors. Comparatively, 60.7% of shares of all “Property & Casualty Insurance” companies are held by institutional investors. 6.6% of Arch Capital Group shares are held by insiders. Comparatively, 15.5% of shares of all “Property & Casualty Insurance” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Arch Capital Group and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arch Capital Group 0 6 3 0 2.33
Arch Capital Group Competitors 618 2257 2152 42 2.32

Arch Capital Group presently has a consensus target price of $97.71, suggesting a potential downside of 4.14%. As a group, “Property & Casualty Insurance” companies have a potential downside of 1.68%. Given Arch Capital Group’s competitors higher possible upside, analysts plainly believe Arch Capital Group has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares Arch Capital Group and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Arch Capital Group $4.91 billion $1.14 billion 18.63
Arch Capital Group Competitors $11.75 billion $2.00 billion 36.10

Arch Capital Group’s competitors have higher revenue and earnings than Arch Capital Group. Arch Capital Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Arch Capital Group and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arch Capital Group 15.65% 8.76% 2.32%
Arch Capital Group Competitors 10.08% 5.28% 2.71%

Summary

Arch Capital Group competitors beat Arch Capital Group on 9 of the 13 factors compared.

Arch Capital Group Company Profile

Arch Capital Group Ltd. provides insurance, reinsurance and mortgage insurance. The Company provides a range of property, casualty and mortgage insurance and reinsurance lines. The Company operates in five segments: insurance, reinsurance, mortgage, other and corporate. The insurance segment’s product lines include construction and national accounts; excess and surplus casualty; lenders products; professional lines; programs; property, energy, marine and aviation; travel, accident and health, and other. The reinsurance segment’s product lines include casualty; marine and aviation; other specialty; property catastrophe; property excluding property catastrophe, and other. The mortgage segment includes the results of Arch Mortgage Insurance Company and Arch Mortgage Insurance Designated Activity Company, which are providers of mortgage insurance products and services to the United States and European markets. The other segment includes the results of Watford Holdings Ltd.

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