WallStSmart

Arch Capital Group Ltd (ACGL)vsEnterprise Financial Services (EFSC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 2773% more annual revenue ($19.93B vs $693.68M). EFSC leads profitability with a 28.9% profit margin vs 22.1%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

81

out of 100

Grade: A-

Growth: 8.7Profit: 8.0Value: 7.0Quality: 6.5
Piotroski: 5/9

EFSC

Strong Buy

69

out of 100

Grade: B-

Growth: 5.3Profit: 7.5Value: 7.0Quality: 3.8
Piotroski: 4/9Altman Z: -0.73

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

EPS GrowthGrowth
38.8%8/10

Earnings expanding 38.8% YoY

EFSC4 strengths · Avg: 9.8/10
P/E RatioValuation
11.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Operating MarginProfitability
35.3%10/10

Strong operational efficiency at 35.3%

Profit MarginProfitability
28.9%9/10

Keeps 29 of every $100 in revenue as profit

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

EFSC2 concerns · Avg: 2.0/10
EPS GrowthGrowth
-0.8%2/10

Earnings declined 0.8%

Altman Z-ScoreHealth
-0.732/10

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 22.1% and operating margin at 29.5%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : EFSC

The strongest argument for EFSC centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 28.9% and operating margin at 35.3%. Revenue growth of 12.6% demonstrates continued momentum.

Bear Case : ACGL

No major red flags identified for ACGL, but monitor valuation.

Bear Case : EFSC

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

Key Dynamics to Monitor

EFSC carries more volatility with a beta of 0.80 — expect wider price swings.

EFSC is growing revenue faster at 12.6% — sustainability is the question.

ACGL generates stronger free cash flow (1.4B), providing more financial flexibility.

Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ACGL scores higher overall (81/100 vs 69/100), backed by strong 22.1% margins. Both earn "Exceptional 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.

Enterprise Financial Services

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Enterprise Financial Services Corp is the financial holding company of Enterprise Bank & Trust offering banking and wealth management services to individual and corporate clients. The company is headquartered in Clayton, Missouri.

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