Arch Capital Group Ltd. (ACGL) vs Pelagos Insurance Capital Limited (PLGO)

Arch Capital Group Ltd. and Pelagos Insurance Capital Limited are both Insurance Diversified companies. Arch Capital Group Ltd. is the larger, with a market value of $37.7B against $2.3B — 16.3× the size. Pelagos Insurance Capital Limited trades at the lower P/E: 6.7× against 8.8×. Pelagos Insurance Capital Limited grew revenue faster over the last twelve months: −3.61% against −3.91%. Arch Capital Group Ltd. has the higher net margin (23.1% vs 15.9%) and the lower return on invested capital (11.8% vs 13.4%). Only Pelagos Insurance Capital Limited pays a dividend (2.16%). Across the 21 metrics below, Pelagos Insurance Capital Limited leads on 13 and Arch Capital Group Ltd. on 8.

Valuation

Metric ACGL PLGO Insurance Diversified median
P/E 8.83 6.73 11.57
P/S 1.97 0.93 1.52
P/B 1.67 1.05 1.64
Price to free cash flow 6.58 3.72 6.58
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 11.33% 14.85% 7.65%
Free cash flow yield 15.20% 26.91% 15.20%

Profitability

Metric ACGL PLGO Insurance Diversified median
Gross margin 37.64% 25.19% 53.26%
Operating margin 26.60% 20.68% 19.02%
Net margin 23.10% 15.94% 15.94%
Free cash flow margin 29.98% 25.07% 6.29%
Return on equity 19.25% 17.64% 12.08%
Return on assets 5.31% 2.97% 5.31%
Return on invested capital 11.80% 13.40% 9.01%

Growth

Metric ACGL PLGO Insurance Diversified median
Revenue growth (TTM) (3.91%) (3.61%) 1.89%
EPS growth (last fiscal year) 3.66% 115.31% 28.70%
Revenue growth, 5-year CAGR 18.56% 26.60% 8.63%
Net income growth, 5-year CAGR 26.16% 12.17% 10.84%

Health

Metric ACGL PLGO Insurance Diversified median
Debt to equity 0.20 0.32 0.17
Current ratio 0.47 0.65 0.47
Net debt to EBITDA 0.38 (1.33) 0.17

Dividend

Metric ACGL PLGO Insurance Diversified median
Dividend yield 0.00% 2.16% 1.96%
Payout ratio 0.00 0.15 0.15

Size

Metric ACGL PLGO Insurance Diversified median
Market cap 37.73b 2.31b 12.81b

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