WallStSmart

Arch Capital Group Ltd. (ACGL)vsBanco Santander Brasil SA ADR (BSBR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Banco Santander Brasil SA ADR generates 131% more annual revenue ($45.72B vs $19.78B). BSBR leads profitability with a 28.2% profit margin vs 24.6%. BSBR appears more attractively valued with a PEG of 0.42. ACGL earns a higher WallStSmart Score of 79/100 (B+).

ACGL

Strong Buy

79

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

BSBR

Strong Buy

70

out of 100

Grade: B-

Growth: 5.3Profit: 8.0Value: 7.7Quality: 3.0
Piotroski: 3/9Altman Z: -0.20

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

Profit MarginProfitability
24.6%9/10

Keeps 25 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

BSBR6 strengths · Avg: 9.7/10
PEG RatioValuation
0.4210/10

Growing faster than its price suggests

Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
43.0%10/10

Strong operational efficiency at 43.0%

Free Cash FlowQuality
$38.94B10/10

Generating 38.9B in free cash flow

Return on EquityProfitability
23.0%9/10

Every $100 of equity generates 23 in profit

Profit MarginProfitability
28.2%9/10

Keeps 28 of every $100 in revenue as profit

Areas to Watch

ACGL2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

BSBR4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
0.4%4/10

0.4% revenue growth

EPS GrowthGrowth
3.3%4/10

3.3% earnings growth

Debt/EquityHealth
1.063/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, EPS Growth. Profitability is solid with margins at 24.6% and operating margin at 25.3%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : BSBR

The strongest argument for BSBR centers on PEG Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 28.2% and operating margin at 43.0%. PEG of 0.42 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth, Altman Z-Score.

Bear Case : BSBR

The primary concerns for BSBR are Revenue Growth, EPS Growth, Debt/Equity.

Key Dynamics to Monitor

ACGL profiles as a declining stock while BSBR is a value play — different risk/reward profiles.

ACGL carries more volatility with a beta of 0.31 — expect wider price swings.

BSBR is growing revenue faster at 0.4% — sustainability is the question.

BSBR generates stronger free cash flow (38.9B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (79/100 vs 70/100), backed by strong 24.6% margins. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Arch Capital Group Ltd.

FINANCIAL SERVICES · INSURANCE - DIVERSIFIED · USA

Arch Capital Group Ltd., offers insurance, reinsurance and mortgage products worldwide. The company is headquartered in Pembroke, Bermuda.

Banco Santander Brasil SA ADR

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Banco Santander (Brasil) SA offers various banking products and services to individuals, small and medium-sized companies and corporate clients in Brazil and internationally. The company is headquartered in So Paulo, Brazil.

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