WallStSmart

Arch Capital Group Ltd. (ACGL)vsCapitol Federal Financial Inc (CFFN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 9044% more annual revenue ($19.78B vs $216.29M). CFFN leads profitability with a 35.9% profit margin vs 24.6%. ACGL appears more attractively valued with a PEG of 1.06. 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

CFFN

Strong Buy

70

out of 100

Grade: B-

Growth: 8.0Profit: 7.0Value: 5.0Quality: 4.0
Piotroski: 6/9Altman Z: -0.54

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
1.4x10/10

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

CFFN5 strengths · Avg: 9.2/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
35.9%10/10

Keeps 36 of every $100 in revenue as profit

Operating MarginProfitability
47.3%10/10

Strong operational efficiency at 47.3%

P/E RatioValuation
13.3x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
34.3%8/10

Earnings expanding 34.3% YoY

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

CFFN4 concerns · Avg: 2.8/10
Market CapQuality
$996.39M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

Debt/EquityHealth
1.663/10

Elevated debt levels

PEG RatioValuation
4.092/10

Expensive relative to growth rate

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 : CFFN

The strongest argument for CFFN centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 35.9% and operating margin at 47.3%. Revenue growth of 13.4% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : CFFN

The primary concerns for CFFN are Market Cap, Return on Equity, Debt/Equity. Debt-to-equity of 1.66 is elevated, increasing financial risk.

Key Dynamics to Monitor

ACGL profiles as a declining stock while CFFN is a mature play — different risk/reward profiles.

CFFN carries more volatility with a beta of 0.69 — expect wider price swings.

CFFN is growing revenue faster at 13.4% — 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.

Capitol Federal Financial Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Capitol Federal Financial, Inc. is the holding company for Capitol Federal Savings Bank offering various retail banking products and services in the United States. The company is headquartered in Topeka, Kansas.

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