Critical Survey: Scor (OTCMKTS:SCRYY) vs. Arch Capital Group (NASDAQ:ACGL)

Arch Capital Group (NASDAQ:ACGL) and Scor (OTCMKTS:SCRYY) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Insider & Institutional Ownership

89.1% of Arch Capital Group shares are held by institutional investors. 3.3% of Arch Capital Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Arch Capital Group and Scor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arch Capital Group	24.40%	17.06%	4.87%
Scor	5.50%	19.18%	2.33%

Analyst Recommendations

This is a breakdown of current ratings for Arch Capital Group and Scor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arch Capital Group	1	7	7	0	2.40
Scor	1	3	3	0	2.29

Arch Capital Group currently has a consensus price target of $111.11, suggesting a potential upside of 15.63%. Given Arch Capital Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe Arch Capital Group is more favorable than Scor.

Risk and Volatility

Arch Capital Group has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500. Comparatively, Scor has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Earnings and Valuation

This table compares Arch Capital Group and Scor”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arch Capital Group	$19.93 billion	1.65	$4.40 billion	$12.79	7.51
Scor	$17.39 billion	0.41	$962.82 million	$0.54	7.37

Arch Capital Group has higher revenue and earnings than Scor. Scor is trading at a lower price-to-earnings ratio than Arch Capital Group, indicating that it is currently the more affordable of the two stocks.

Summary

Arch Capital Group beats Scor on 12 of the 14 factors compared between the two stocks.

About Arch Capital Group

Arch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products worldwide. The company's Insurance segment offers primary and excess casualty coverages; loss sensitive primary casualty insurance programs; 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; employer's liability; contract and commercial surety coverages; and collateral protection, debt cancellation, and service contract reimbursement products. This segment markets its products through a group of licensed independent retail and wholesale brokers. Its Reinsurance segment provides casualty reinsurance for third party liability exposures; marine and aviation; motor reinsurance, whole account multi-line treaties, cyber, trade credit, surety, accident and health, workers' compensation catastrophe, agriculture, trade credit, and political risk products; reinsurance protection for catastrophic losses, and personal lines and commercial property exposures; life reinsurance; casualty clash; and risk management solutions. This segment markets its reinsurance products through brokers. The company's Mortgage segment offers direct mortgage insurance and mortgage reinsurance. The company was founded in 1995 and is based in Pembroke, Bermuda.

About Scor

SCOR SE, together with its subsidiaries, provides life and non-life reinsurance products in Europe, the Middle East, Africa, the Americas, Latin America, and Asia Pacific. It operates in two segments, SCOR P&C and SCOR L&H. The SCOR P&C segment offers reinsurance products in the areas of property, motors, casualty treaties, credit and surety, decennial insurance, aviation, marine and energy, engineering, agricultural risks, and property catastrophes; specialties insurance products, including business solutions, political and credit risks, cyber, and environmental liability; and business ventures and partnerships. The SCOR L&H segment provides life reinsurance products, such as protection for mortality, morbidity, behavioral risks, disability, long-term care, critical illness, medical, and personal accident. This segment also provides financial solutions that combine traditional life reinsurance with financial components and provide liquidity, balance sheet, solvency, and income improvements to clients; longevity solutions that include products covering the risk of negative deviation from expected results due to the insured or annuitant living longer than assumed in the pricing of insurance covers provided by insurers or pension funds; and distribution solutions. In addition, it is involved in the asset management business. SCOR SE was founded in 1970 and is headquartered in Paris, France.