Arch Capital Group Ltd. (ACGL)vsFirst American Corporation (FAF)
ACGL
Arch Capital Group Ltd.
$96.09
-0.11%
FINANCIAL SERVICES · Cap: $33.47B
FAF
First American Corporation
$71.78
+0.84%
FINANCIAL SERVICES · Cap: $7.43B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 141% more annual revenue ($19.23B vs $7.98B). ACGL leads profitability with a 24.4% profit margin vs 9.3%. ACGL appears more attractively valued with a PEG of 1.06. FAF earns a higher WallStSmart Score of 70/100 (B).
ACGL
Strong Buy67
out of 100
Grade: B-
FAF
Strong Buy70
out of 100
Grade: B
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 26.6%
Generating 1.3B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 50.4% YoY
15.0% revenue growth
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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 : FAF
The strongest argument for FAF centers on P/E Ratio, Price/Book, EPS Growth. Revenue growth of 15.0% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : FAF
The primary concerns for FAF are PEG Ratio.
Key Dynamics to Monitor
ACGL profiles as a declining stock while FAF is a value play — different risk/reward profiles.
FAF carries more volatility with a beta of 1.23 — expect wider price swings.
FAF is growing revenue faster at 15.0% — sustainability is the question.
ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
FAF scores higher overall (70/100 vs 67/100) and 15.0% revenue growth. 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.
First American Corporation
FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA
First American Financial Corporation, provides financial services. The company is headquartered in Santa Ana, California.
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