Arch Capital Group (NASDAQ: ACGL) and Meadowbrook Insurance Group (NYSE:MIG) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.


This table compares Arch Capital Group and Meadowbrook Insurance Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arch Capital Group 9.44% 5.57% 1.44%
Meadowbrook Insurance Group 4.54% 7.19% 1.16%

Institutional & Insider Ownership

79.5% of Arch Capital Group shares are held by institutional investors. 6.6% of Arch Capital Group shares 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 Recommendations

This is a breakdown of recent recommendations and price targets for Arch Capital Group and Meadowbrook Insurance Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arch Capital Group 0 6 4 0 2.40
Meadowbrook Insurance Group 0 0 0 0 N/A

Arch Capital Group currently has a consensus price target of $99.67, suggesting a potential upside of 5.07%. Given Arch Capital Group’s higher probable upside, research analysts plainly believe Arch Capital Group is more favorable than Meadowbrook Insurance Group.

Earnings and Valuation

This table compares Arch Capital Group and Meadowbrook Insurance Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arch Capital Group $4.39 billion 2.83 $692.73 million $3.10 30.60
Meadowbrook Insurance Group N/A N/A N/A $0.53 16.30

Arch Capital Group has higher revenue and earnings than Meadowbrook Insurance Group. Meadowbrook Insurance Group is trading at a lower price-to-earnings ratio than Arch Capital Group, indicating that it is currently the more affordable of the two stocks.


Arch Capital Group beats Meadowbrook Insurance Group on 8 of the 9 factors compared between the two stocks.

About Arch Capital Group

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.

About Meadowbrook Insurance Group

Meadowbrook Insurance Group, Inc. (Meadowbrook) is a holding company. The Company is a commercial insurance underwriter and insurance administration services company. The Company markets and underwrites specialty property and casualty insurance programs and products through a network of independent retail agents, wholesalers, program administrators and general agents. The Company’s products include Admitted Programs and Standard Market Products, Main Street Excess and Surplus Lines, Non-Admitted Programs, and Specialty Market Products. The Company is also involved in a range of activities, including program and product design, underwriting risk selection and policy issuance, claims administration and handling, loss prevention and control and reinsurance. The Company also provides the following services to its fee-for-service and agency clients: administration of risk-bearing entities and agency services.

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