FIHL vs ACGL

For growth investors, Arch Capital Group Ltd.

(ACGL) is the stronger pick with 14. 3% revenue growth year-over-year, versus -32. 6% for Fidelis Insurance Holdings Limited (FIHL). 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 Fidelis Insurance Holdings Limited (FIHL) a "Buy" — based on 11 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 Fidelis Insurance Holdings Limited at 21. 4x. On forward P/E, Fidelis Insurance Holdings Limited is actually cheaper at 6. 3x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Arch Capital Group Ltd.

(ACGL) delivered a total return of +150. 7%, compared to +70. 9% for Fidelis Insurance Holdings Limited (FIHL). Over 10 years, the gap is even starker: ACGL returned +325. 3% versus FIHL's +70. 9%. 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 Fidelis Insurance Holdings Limited's 0. 48β — meaning FIHL is approximately 3020% more volatile than ACGL relative to the S&P 500. On balance sheet safety, Arch Capital Group Ltd. (ACGL) carries a lower debt/equity ratio of 11% versus 18% for Fidelis Insurance Holdings Limited — 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 -32. 6% for Fidelis Insurance Holdings Limited (FIHL). On earnings-per-share growth, the picture is similar: Arch Capital Group Ltd. grew EPS 3. 8% year-over-year, compared to -94. 7% for Fidelis Insurance Holdings Limited. 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 4. 7% for Fidelis Insurance Holdings Limited — 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 5. 6% for FIHL. At the gross margin level — before operating expenses — ACGL leads at 37. 2%, 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, Fidelis Insurance Holdings Limited (FIHL) trades at 6.

3x forward P/E versus 10. 1x for Arch Capital Group Ltd. — 3. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ACGL: 9. 8% to $104. 00.

In this comparison, FIHL (1.

9% yield) pays a dividend. ACGL does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Arch Capital Group Ltd.

(ACGL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 02), +325. 3% 10Y return). Both have compounded well over 10 years (ACGL: +325. 3%, FIHL: +70. 9%), 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.

In terms of investment character: FIHL is a small-cap quality compounder stock; ACGL is a mid-cap deep-value stock. FIHL 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.