Arch Capital Group Ltd. (ACGL) vs Waterdrop Inc. Unsponsored ADR (WDH)

Arch Capital Group Ltd. and Waterdrop Inc. Unsponsored ADR are both Insurance Diversified companies. Arch Capital Group Ltd. is the larger, with a market value of $33.9B against $283.5M — 119.5× the size. Waterdrop Inc. Unsponsored ADR trades at the lower P/E: 4.8× against 7.8×. Waterdrop Inc. Unsponsored ADR grew revenue faster over the last twelve months: 80.9% against 0.40%. Arch Capital Group Ltd. has the higher net margin (24.2% vs 10.8%) and the higher return on invested capital (11.7% vs 6.46%). Only Waterdrop Inc. Unsponsored ADR pays a dividend (5.94%). Across the 21 metrics below, Waterdrop Inc. Unsponsored ADR leads on 14 and Arch Capital Group Ltd. on 7.

Valuation

Metric ACGL WDH Insurance Diversified median
P/E 7.77 4.81 11.63
P/S 1.81 0.49 1.61
P/B 1.50 0.46 1.53
Price to free cash flow 5.74 1.61 6.29
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 12.88% 20.79% 7.48%
Free cash flow yield 17.42% 62.19% 15.90%

Profitability

Metric ACGL WDH Insurance Diversified median
Gross margin 38.76% 57.13% 53.26%
Operating margin 27.62% 7.68% 18.04%
Net margin 24.19% 10.75% 15.94%
Free cash flow margin 31.48% 0.00% 20.02%
Return on equity 20.49% 10.75% 12.08%
Return on assets 5.67% 7.69% 5.06%
Return on invested capital 11.71% 6.46% 9.01%

Growth

Metric ACGL WDH Insurance Diversified median
Revenue growth (TTM) 0.40% 80.88% (1.11%)
EPS growth (last fiscal year) 3.66% 70.28% 28.70%
Revenue growth, 5-year CAGR 18.56% 4.16% 8.63%
Net income growth, 5-year CAGR 26.16% 0.00% 10.84%

Health

Metric ACGL WDH Insurance Diversified median
Debt to equity 0.23 0.09 0.22
Current ratio 0.48 2.19 0.48
Net debt to EBITDA 0.38 (4.16) 0.17

Dividend

Metric ACGL WDH Insurance Diversified median
Dividend yield 0.00% 5.94% 2.07%
Payout ratio 0.00 0.29 0.16

Size

Metric ACGL WDH Insurance Diversified median
Market cap 33.89b 283.50m 12.21b

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