Arch Capital Group (NASDAQ:ACGL) and Till Capital (NASDAQ:TIL) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.

Earnings and Valuation

This table compares Arch Capital Group and Till Capital’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arch Capital Group $5.45 billion 2.81 $757.97 million $2.20 17.26
Till Capital N/A N/A N/A N/A N/A

Arch Capital Group has higher revenue and earnings than Till Capital.

Profitability

This table compares Arch Capital Group and Till Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arch Capital Group 17.93% 10.24% 3.01%
Till Capital N/A N/A N/A

Insider & Institutional Ownership

80.0% of Arch Capital Group shares are held by institutional investors. Comparatively, 0.1% of Till Capital shares are held by institutional investors. 5.2% of Arch Capital Group shares are held by insiders. Comparatively, 22.2% of Till Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Arch Capital Group and Till Capital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arch Capital Group 1 4 3 0 2.25
Till Capital 0 0 0 0 N/A

Arch Capital Group currently has a consensus price target of $34.23, suggesting a potential downside of 9.89%. Given Arch Capital Group’s higher possible upside, research analysts plainly believe Arch Capital Group is more favorable than Till Capital.

Summary

Arch Capital Group beats Till Capital on 7 of the 8 factors compared between the two stocks.

About Arch Capital Group

Arch Capital Group Ltd., together with its subsidiaries, provides property, casualty, and mortgage insurance and reinsurance products worldwide. The company's Insurance segment offers primary and excess casualty coverages; loss sensitive primary casualty insurance programs; collateral protection, debt cancellation, and service contract reimbursement products; directors' and officers' liability, errors and omissions liability, employment practices and fiduciary liability, crime, professional indemnity, and other financial related coverages; medical professional and general liability insurance coverages; and workers' compensation and umbrella liability, as well as commercial automobile and inland marine products. It also provides property, energy, marine, and aviation insurance; travel insurance; accident, disability, and medical plan insurance coverages; captive insurance programs; employers' liability insurance coverages; and contract and commercial surety coverages. This segment markets its products through a group of licensed independent retail and wholesale brokers. Its Reinsurance segment provides reinsurance for third party liability and workers' compensation exposures; marine and aviation reinsurance; surety, accident and health, workers' compensation catastrophe, agriculture, trade credit, and political risk products; reinsurance protection for catastrophic losses and commercial property risks; life reinsurance; casualty clash; and risk management solutions. This segment markets its reinsurance products through brokers, and directly to ceding companies. The company's Mortgage segment offers private mortgage insurance covering one-to-four family residential mortgages; mortgage insurance to cover previously originated residential loans; quota share reinsurance; and risk-sharing products. This segment sells its products through direct basis and through brokers to mortgage originators. The company was founded in 1995 and is based in Pembroke, Bermuda.

About Till Capital

Till Capital Ltd., through its subsidiaries, engages in the insurance and reinsurance business in Canada, Bermuda, and the United States. The company provides assumption reinsurance to insurance companies that want to exit the Canadian market; and to insurance companies that want to transfer their remaining claim liabilities on particular books of business, as well as operational services to facilitate the exit of those companies. It also acts as the primary insurer and direct writer for insurance companies seeking Canadian business, but lacking the appropriate Canadian insurance licenses; and ongoing and one-time consulting services in the areas of taxation, risk management, mergers and acquisitions, expert witness testimony, and claim reviews. The company is based in Hamilton, Bermuda.

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