WallStSmart

Arch Capital Group Ltd. (ACGL)vsECB Bancorp Inc. (ECBK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 56750% more annual revenue ($19.78B vs $34.79M). ECBK leads profitability with a 27.6% profit margin vs 24.6%. ACGL trades at a lower P/E of 7.0x. 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

ECBK

Strong Buy

67

out of 100

Grade: B-

Growth: 10.0Profit: 7.0Value: 6.0Quality: 5.0
Piotroski: 5/9

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

ECBK6 strengths · Avg: 9.5/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Operating MarginProfitability
45.1%10/10

Strong operational efficiency at 45.1%

Revenue GrowthGrowth
44.4%10/10

Revenue surging 44.4% year-over-year

EPS GrowthGrowth
140.6%10/10

Earnings expanding 140.6% YoY

Profit MarginProfitability
27.6%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
15.7x8/10

Attractively priced relative to earnings

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

ECBK3 concerns · Avg: 3.0/10
Market CapQuality
$158.88M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.5%3/10

ROE of 5.5% — below average capital efficiency

Debt/EquityHealth
1.483/10

Elevated debt levels

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 : ECBK

The strongest argument for ECBK centers on Price/Book, Operating Margin, Revenue Growth. Profitability is solid with margins at 27.6% and operating margin at 45.1%. Revenue growth of 44.4% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : ECBK

The primary concerns for ECBK are Market Cap, Return on Equity, Debt/Equity.

Key Dynamics to Monitor

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

ECBK carries more volatility with a beta of 0.49 — expect wider price swings.

ECBK is growing revenue faster at 44.4% — 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 67/100), 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.

ECB Bancorp Inc.

FINANCIAL SERVICES · BANKS - REGIONAL · USA

ECB Bancorp Inc. is the holding company for East Cambridge Savings Bank, a community-oriented financial institution headquartered in Cambridge, Massachusetts. The bank provides a diverse range of banking services, including residential and commercial loans, deposit accounts, and wealth management products, catering to both individual and business clients. With a strong emphasis on community involvement and a solid financial infrastructure, ECB Bancorp is well-positioned for sustainable growth and profitability, actively pursuing strategies to enhance shareholder value within the dynamic financial services landscape.

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