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

Institutional and Insider Ownership

76.4% of Arch Capital Group shares are held by institutional investors. Comparatively, 60.8% of shares of all “Property & Casualty Insurance” companies are held by institutional investors. 6.6% of Arch Capital Group shares are held by company insiders. Comparatively, 15.5% of shares of all “Property & Casualty Insurance” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Arch Capital Group and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arch Capital Group 0 6 4 0 2.40
Arch Capital Group Competitors 622 2278 2170 45 2.32

Arch Capital Group currently has a consensus price target of $99.67, suggesting a potential upside of 0.03%. As a group, “Property & Casualty Insurance” companies have a potential downside of 0.31%. Given Arch Capital Group’s stronger consensus rating and higher possible upside, research analysts plainly believe Arch Capital Group is more favorable than its peers.

Earnings and Valuation

This table compares Arch Capital Group and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Arch Capital Group $4.91 billion $1.14 billion 32.14
Arch Capital Group Competitors $11.75 billion $2.00 billion 39.55

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

Risk and Volatility

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

Profitability

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

Net Margins Return on Equity Return on Assets
Arch Capital Group 9.44% 5.70% 1.47%
Arch Capital Group Competitors 9.69% 5.04% 2.66%

Summary

Arch Capital Group peers 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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