AMSF vs ACGL

For growth investors, Arch Capital Group Ltd.

(ACGL) is the stronger pick with 14. 3% revenue growth year-over-year, versus 2. 6% for AMERISAFE, Inc. (AMSF). Arch Capital Group Ltd. (ACGL) offers the better valuation at 8. 1x trailing P/E (10. 1x forward), making it the more compelling value choice. Analysts rate AMERISAFE, Inc. (AMSF) a "Buy" — based on 6 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Arch Capital Group Ltd.

(ACGL) is the cheapest at 8. 1x versus AMERISAFE, Inc. at 12. 0x. On forward P/E, Arch Capital Group Ltd. is actually cheaper at 10. 1x.

Over the past 5 years, Arch Capital Group Ltd.

(ACGL) delivered a total return of +150. 7%, compared to -20. 5% for AMERISAFE, Inc. (AMSF). Over 10 years, the gap is even starker: ACGL returned +325. 3% versus AMSF's +33. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Arch Capital Group Ltd.

(ACGL) is the lower-risk stock at 0. 02β versus AMERISAFE, Inc. 's 0. 23β — meaning AMSF is approximately 1410% more volatile than ACGL relative to the S&P 500. On balance sheet safety, AMERISAFE, Inc. (AMSF) carries a lower debt/equity ratio of 0% versus 11% for Arch Capital Group Ltd. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Arch Capital Group Ltd.

(ACGL) is pulling ahead at 14. 3% versus 2. 6% for AMERISAFE, Inc. (AMSF). On earnings-per-share growth, the picture is similar: Arch Capital Group Ltd. grew EPS 3. 8% year-over-year, compared to -14. 5% for AMERISAFE, Inc.. Over a 3-year CAGR, ACGL leads at 27. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Arch Capital Group Ltd.

(ACGL) is the more profitable company, earning 22. 1% net margin versus 14. 9% for AMERISAFE, Inc. — meaning it keeps 22. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ACGL leads at 25. 0% versus 18. 6% for AMSF. At the gross margin level — before operating expenses — AMSF leads at 46. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Arch Capital Group Ltd.

(ACGL) trades at 10. 1x forward P/E versus 14. 1x for AMERISAFE, Inc. — 4. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AMSF: 50. 3% to $44. 50.

In this comparison, AMSF (8.

6% yield) pays a dividend. ACGL does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, AMERISAFE, Inc.

(AMSF) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 23), 8. 6% yield). Both have compounded well over 10 years (AMSF: +33. 4%, ACGL: +325. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

AMSF pays a dividend while ACGL does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.