WallStSmart

Arch Capital Group Ltd. (ACGL)vsBankwell Financial Group Inc (BWFG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 17033% more annual revenue ($19.78B vs $115.43M). BWFG leads profitability with a 34.3% profit margin vs 24.6%. ACGL trades at a lower P/E of 7.8x. 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

BWFG

Strong Buy

70

out of 100

Grade: B-

Growth: 9.3Profit: 7.5Value: 6.0Quality: 6.5
Piotroski: 5/9Altman Z: 0.76

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.2/10
P/E RatioValuation
7.8x10/10

Attractively priced relative to earnings

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

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

BWFG6 strengths · Avg: 9.3/10
Profit MarginProfitability
34.3%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
47.7%10/10

Strong operational efficiency at 47.7%

Revenue GrowthGrowth
35.3%10/10

Revenue surging 35.3% year-over-year

EPS GrowthGrowth
62.1%10/10

Earnings expanding 62.1% YoY

P/E RatioValuation
12.0x8/10

Attractively priced relative to earnings

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

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

BWFG2 concerns · Avg: 2.5/10
Market CapQuality
$479.19M3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
0.762/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, EPS Growth, Return on Equity. 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 : BWFG

The strongest argument for BWFG centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 34.3% and operating margin at 47.7%. Revenue growth of 35.3% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : BWFG

The primary concerns for BWFG are Market Cap, Altman Z-Score.

Key Dynamics to Monitor

ACGL profiles as a declining stock while BWFG is a growth play — different risk/reward profiles.

BWFG carries more volatility with a beta of 0.60 — expect wider price swings.

BWFG is growing revenue faster at 35.3% — sustainability is the question.

ACGL generates stronger free cash flow (1.2B), 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.

Bankwell Financial Group Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Bankwell Financial Group, Inc. is the banking holding company for Bankwell Bank offering a range of banking products and services to business customers and consumers in Connecticut. The company is headquartered in New Canaan, Connecticut.

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