GSHD vs ACGL

For growth investors, Goosehead Insurance, Inc (GSHD) is the stronger pick with 16.

2% revenue growth year-over-year, versus 14. 3% for Arch Capital Group Ltd. (ACGL). 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 Goosehead Insurance, Inc (GSHD) a "Buy" — based on 18 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 Goosehead Insurance, Inc at 40. 5x. On forward P/E, Arch Capital Group Ltd. is actually cheaper at 10. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Arch Capital Group Ltd. wins at 0. 35x versus Goosehead Insurance, Inc's 1. 27x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Arch Capital Group Ltd.

(ACGL) delivered a total return of +144. 0%, compared to -52. 6% for Goosehead Insurance, Inc (GSHD). Over 10 years, the gap is even starker: ACGL returned +324. 0% versus GSHD's +225. 2%. 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 Goosehead Insurance, Inc's 0. 64β — meaning GSHD is approximately 4067% more volatile than ACGL relative to the S&P 500.

By revenue growth (latest reported year), Goosehead Insurance, Inc (GSHD) is pulling ahead at 16.

2% versus 14. 3% for Arch Capital Group Ltd. (ACGL). On earnings-per-share growth, the picture is similar: Arch Capital Group Ltd. grew EPS 3. 8% year-over-year, compared to -10. 3% for Goosehead Insurance, 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 7. 6% for Goosehead Insurance, 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 20. 4% for GSHD. At the gross margin level — before operating expenses — GSHD leads at 46. 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Arch Capital Group Ltd. (ACGL) is the more undervalued stock at a PEG of 0. 35x versus Goosehead Insurance, Inc's 1. 27x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Arch Capital Group Ltd. (ACGL) trades at 10. 1x forward P/E versus 19. 4x for Goosehead Insurance, Inc — 9. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GSHD: 59. 4% to $67. 14.

In this comparison, GSHD (9.

1% 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), +324. 0% 10Y return). Both have compounded well over 10 years (ACGL: +324. 0%, GSHD: +225. 2%), 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: GSHD is a small-cap high-growth stock; ACGL is a mid-cap deep-value stock. GSHD 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.