GSHD vs SLQT vs ACGL vs LMND vs ROOT

For growth investors, Lemonade, Inc.

(LMND) is the stronger pick with 40. 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 SelectQuote, Inc. at 85. 7x. 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 -96. 1% for SelectQuote, Inc. (SLQT). Over 10 years, the gap is even starker: ACGL returned +324. 0% versus SLQT's -95. 8%. 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 Lemonade, Inc. 's 2. 75β — meaning LMND is approximately 17895% 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 72% for SelectQuote, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Lemonade, Inc.

(LMND) is pulling ahead at 40. 2% versus 14. 3% for Arch Capital Group Ltd. (ACGL). On earnings-per-share growth, the picture is similar: SelectQuote, Inc. grew EPS 106. 7% year-over-year, compared to -10. 3% for Goosehead Insurance, Inc. Over a 3-year CAGR, ROOT leads at 69. 6% 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 -22. 4% for Lemonade, 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 -21. 8% for LMND. 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 29. 0x for Root, Inc. — 19. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SLQT: 250. 9% to $4. 00.

In this comparison, GSHD (9.

1% yield) pays a dividend. SLQT, ACGL, LMND, ROOT do 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). Root, Inc. (ROOT) carries a higher beta of 2. 30 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ACGL: +324. 0%, ROOT: -88. 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.

In terms of investment character: GSHD is a small-cap high-growth stock; SLQT is a small-cap high-growth stock; ACGL is a mid-cap deep-value stock; LMND is a small-cap high-growth stock; ROOT is a small-cap high-growth stock. GSHD pays a dividend while SLQT, ACGL, LMND, ROOT do 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.