Arch Capital Group Ltd. (ACGL) vs Berkshire Hathaway Inc. (BRK.B)

Arch Capital Group Ltd. and Berkshire Hathaway Inc. are both Insurance Diversified companies. Berkshire Hathaway Inc. is the larger, with a market value of $974.3B against $32.4B — 30.1× the size. Arch Capital Group Ltd. trades at the lower P/E: 7.3× against 12.7×. Berkshire Hathaway Inc. grew revenue faster over the last twelve months: 3.93% against 0.40%. Arch Capital Group Ltd. has the higher net margin (24.2% vs 22.3%) and the higher return on invested capital (11.7% vs 9.01%). Across the 22 metrics below, Arch Capital Group Ltd. leads on 16 and Berkshire Hathaway Inc. on 6.

Valuation

Metric ACGL BRK.B Insurance Diversified median
P/E 7.26 12.71 11.30
P/S 1.69 2.83 1.47
P/B 1.40 1.45 1.45
Price to free cash flow 5.37 45.01 5.78
EV/EBITDA 6.73 6.25 6.62
EV/Sales 1.91 3.06 1.82
Earnings yield 13.78% 7.87% 7.87%
Free cash flow yield 18.64% 2.22% 17.30%

Profitability

Metric ACGL BRK.B Insurance Diversified median
Gross margin 38.76% 79.27% 53.26%
Operating margin 27.62% 45.36% 18.04%
Net margin 24.19% 22.30% 15.94%
Free cash flow margin 31.48% 6.29% 20.02%
Return on equity 20.49% 12.08% 12.08%
Return on assets 5.67% 7.07% 5.06%
Return on invested capital 11.71% 9.01% 9.01%

Growth

Metric ACGL BRK.B Insurance Diversified median
Revenue growth (TTM) 0.40% 3.93% (1.11%)
EPS growth (last fiscal year) 3.66% (24.79%) —
Revenue growth, 5-year CAGR 18.56% 8.63% 8.63%
Net income growth, 5-year CAGR 26.16% 9.51% 10.84%

Health

Metric ACGL BRK.B Insurance Diversified median
Debt to equity 0.23 0.17 0.22
Current ratio 0.48 0.32 0.48
Net debt to EBITDA 0.38 0.50 0.17

Dividend

Metric ACGL BRK.B Insurance Diversified median
Dividend yield — — 2.08%
Payout ratio 0.00 0.00 0.02

Size

Metric ACGL BRK.B Insurance Diversified median
Market cap 32.39b 974.33b 13.12b

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