WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 50284% more annual revenue ($19.23B vs $38.17M). ECBK leads profitability with a 29.9% profit margin vs 24.4%. ACGL trades at a lower P/E of 7.7x. ACGL earns a higher WallStSmart Score of 67/100 (B-).

ACGL

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

ECBK

Buy

65

out of 100

Grade: C+

Growth: 10.0Profit: 7.0Value: 6.0Quality: 3.5
Piotroski: 5/9Altman Z: -0.54

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
7.7x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

Free Cash FlowQuality
$1.31B8/10

Generating 1.3B in free cash flow

ECBK6 strengths · Avg: 9.5/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Operating MarginProfitability
45.8%10/10

Strong operational efficiency at 45.8%

Revenue GrowthGrowth
49.1%10/10

Revenue surging 49.1% year-over-year

EPS GrowthGrowth
129.4%10/10

Earnings expanding 129.4% YoY

Profit MarginProfitability
29.9%9/10

Keeps 30 of every $100 in revenue as profit

P/E RatioValuation
14.9x8/10

Attractively priced relative to earnings

Areas to Watch

ACGL3 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-10.5%2/10

Revenue declined 10.5%

EPS GrowthGrowth
-7.1%2/10

Earnings declined 7.1%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

ECBK4 concerns · Avg: 2.8/10
Market CapQuality
$180.08M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.5%3/10

ROE of 5.5% — below average capital efficiency

Debt/EquityHealth
1.583/10

Elevated debt levels

Altman Z-ScoreHealth
-0.542/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 24.4% and operating margin at 26.6%. 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 29.9% and operating margin at 45.8%. Revenue growth of 49.1% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : ECBK

The primary concerns for ECBK are Market Cap, Return on Equity, Debt/Equity. Debt-to-equity of 1.58 is elevated, increasing financial risk.

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 0.45 — expect wider price swings.

ECBK is growing revenue faster at 49.1% — sustainability is the question.

ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (67/100 vs 65/100), backed by strong 24.4% margins. Both earn "Strong Buy" and "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. serves as the holding company for East Cambridge Savings Bank, a community-oriented financial institution headquartered in Cambridge, Massachusetts. The bank provides a wide array of financial services, including residential and commercial lending, deposit products, and wealth management, catering to a diverse range of individual and corporate clients. With a strong focus on community involvement and operational excellence, ECB Bancorp is well-positioned for sustained growth and remains committed to delivering long-term shareholder value within the dynamic landscape of the financial services industry.

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