Critical Comparison: Arch Capital Group (NASDAQ:ACGL) versus Baldwin & Lyons Inc Class B (NASDAQ:BWINB)

Arch Capital Group (NASDAQ:ACGL) and Baldwin & Lyons Inc Class B (NASDAQ:BWINB) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Arch Capital Group and Baldwin & Lyons Inc Class B, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arch Capital Group 0 4 3 0 2.43
Baldwin & Lyons Inc Class B 0 0 0 0 N/A

Arch Capital Group presently has a consensus target price of $38.23, indicating a potential downside of 3.84%.

Profitability

This table compares Arch Capital Group and Baldwin & Lyons Inc Class B’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arch Capital Group 20.48% 10.58% 3.17%
Baldwin & Lyons Inc Class B N/A N/A N/A

Institutional and Insider Ownership

79.9% of Arch Capital Group shares are owned by institutional investors. Comparatively, 47.5% of Baldwin & Lyons Inc Class B shares are owned by institutional investors. 5.2% of Arch Capital Group shares are owned by insiders. Comparatively, 38.1% of Baldwin & Lyons Inc Class B shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Arch Capital Group and Baldwin & Lyons Inc Class B’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arch Capital Group $5.45 billion 2.95 $757.97 million $2.20 18.07
Baldwin & Lyons Inc Class B N/A N/A N/A N/A N/A

Arch Capital Group has higher revenue and earnings than Baldwin & Lyons Inc Class B.

Dividends

Baldwin & Lyons Inc Class B pays an annual dividend of $1.12 per share. Arch Capital Group does not pay a dividend. Baldwin & Lyons Inc Class B has increased its dividend for 3 consecutive years.

Summary

Arch Capital Group beats Baldwin & Lyons Inc Class B on 6 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 Baldwin & Lyons Inc Class B

Baldwin & Lyons, Inc., through its subsidiaries, engages in marketing and underwriting property and casualty insurance products. The company offers a range of fleet transportation insurance products, including commercial motor vehicle liability, physical damage, and general liability insurance; workers compensation insurance; medical and indemnity insurance products; non-trucking motor vehicle liability insurance; fidelity and surety bonds; and inland marine products consisting of cargo insurance. It also provides various additional services, such as risk surveys and analyses, safety program design and monitoring, government compliance assistance, loss control, and cost studies; research, development, and consultation in connection with new insurance programs that comprise development of systems to assist customers in monitoring their accident data; and claims handling services to clients with self-insurance programs. It serves trucking and public transportation fleets, as well as independent contractors in the trucking industry. The company primarily operates in the United States, Canada, Bermuda, and Puerto Rico. Baldwin & Lyons, Inc. was founded in 1930 and is headquartered in Carmel, Indiana.

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