Arch Capital Group Ltd. (ACGL) vs American International Group, Inc. (AIG)

Arch Capital Group Ltd. and American International Group, Inc. are both Insurance Diversified companies. American International Group, Inc. is the larger, with a market value of $39.1B against $32.4B — 1.2× the size. Arch Capital Group Ltd. trades at the lower P/E: 7.3× against 13.5×. Arch Capital Group Ltd. grew revenue faster over the last twelve months: 0.40% against −4.19%. Arch Capital Group Ltd. has the higher net margin (24.2% vs 11.1%) and the higher return on invested capital (11.7% vs 4.45%). Across the 22 metrics below, Arch Capital Group Ltd. leads on 16 and American International Group, Inc. on 6.

Valuation

Metric ACGL AIG Insurance Diversified median
P/E 7.26 13.46 11.30
P/S 1.69 1.47 1.47
P/B 1.40 0.97 1.45
Price to free cash flow 5.37 10.20 5.78
EV/EBITDA 6.73 6.51 6.62
EV/Sales 1.91 1.82 1.82
Earnings yield 13.78% 7.43% 7.87%
Free cash flow yield 18.64% 9.80% 17.30%

Profitability

Metric ACGL AIG Insurance Diversified median
Gross margin 38.76% 28.38% 53.26%
Operating margin 27.62% 14.83% 18.04%
Net margin 24.19% 11.13% 15.94%
Free cash flow margin 31.48% 14.45% 20.02%
Return on equity 20.49% 7.22% 12.08%
Return on assets 5.67% 1.80% 5.06%
Return on invested capital 11.71% 4.45% 9.01%

Growth

Metric ACGL AIG Insurance Diversified median
Revenue growth (TTM) 0.40% (4.19%) (1.11%)
EPS growth (last fiscal year) 3.66% 350.23% —
Revenue growth, 5-year CAGR 18.56% (9.35%) 8.63%
Net income growth, 5-year CAGR 26.16% 0.00% 10.84%

Health

Metric ACGL AIG Insurance Diversified median
Debt to equity 0.23 0.26 0.22
Current ratio 0.48 0.51 0.48
Net debt to EBITDA 0.38 1.24 0.17

Dividend

Metric ACGL AIG Insurance Diversified median
Dividend yield — 2.08% 2.08%
Payout ratio 0.00 0.20 0.02

Size

Metric ACGL AIG Insurance Diversified median
Market cap 32.39b 39.12b 13.12b

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