Arch Capital Group Ltd. (ACGL) vs Aegon NV (AEG)

Arch Capital Group Ltd. and Aegon NV are both Insurance Diversified companies. Arch Capital Group Ltd. is the larger, with a market value of $32.4B against $13.1B — 2.5× the size. Aegon NV has negative trailing earnings, so its P/E is not meaningful; Arch Capital Group Ltd. trades at 7.3×. Arch Capital Group Ltd. grew revenue faster over the last twelve months: 0.40% against −36.9%. Arch Capital Group Ltd. has the higher net margin (24.2% vs −10.3%) and the higher return on invested capital (11.7% vs 0.00%). Across the 20 metrics below, Arch Capital Group Ltd. leads on 15 and Aegon NV on 5.

Valuation

Metric ACGL AEG Insurance Diversified median
P/E 7.26 n/m 11.30
P/S 1.69 1.08 1.47
P/B 1.40 1.90 1.45
Price to free cash flow 5.37 6.79 5.78
EV/EBITDA 6.73 n/m 6.62
EV/Sales 1.91 1.09 1.82
Earnings yield 13.78% (8.91%) 7.87%
Free cash flow yield 18.64% 14.73% 17.30%

Profitability

Metric ACGL AEG Insurance Diversified median
Gross margin 38.76% 119.87% 53.26%
Operating margin 27.62% (12.33%) 18.04%
Net margin 24.19% (10.34%) 15.94%
Free cash flow margin 31.48% 0.00% 20.02%
Return on equity 20.49% 0.00% 12.08%
Return on assets 5.67% 0.00% 5.06%
Return on invested capital 11.71% 0.00% 9.01%

Growth

Metric ACGL AEG Insurance Diversified median
Revenue growth (TTM) 0.40% (36.92%) (1.11%)
EPS growth (last fiscal year) 3.66% 46.05% —
Revenue growth, 5-year CAGR 18.56% (15.01%) 8.63%
Net income growth, 5-year CAGR 26.16% 0.00% 10.84%

Health

Metric ACGL AEG Insurance Diversified median
Debt to equity 0.23 0.42 0.22
Current ratio 0.48 0.12 0.48
Net debt to EBITDA 0.38 0.17 0.17

Dividend

Metric ACGL AEG Insurance Diversified median
Dividend yield — 5.67% 2.08%
Payout ratio 0.00 0.66 0.02

Size

Metric ACGL AEG Insurance Diversified median
Market cap 32.39b 13.12b 13.12b

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