Arch Capital Group Ltd. (ACGL)vsFirst American Corporation (FAF)
ACGL
Arch Capital Group Ltd.
$106.36
+2.33%
FINANCIAL SERVICES · Cap: $34.24B
FAF
First American Corporation
$63.72
+0.27%
FINANCIAL SERVICES · Cap: $6.49B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 138% more annual revenue ($19.23B vs $8.09B). ACGL leads profitability with a 24.4% profit margin vs 9.1%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 67/100 (B-).
ACGL
Strong Buy67
out of 100
Grade: B-
FAF
Buy56
out of 100
Grade: C
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Strong operational efficiency at 26.6%
Generating 1.3B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Expensive relative to growth rate
Earnings declined 6.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : ACGL
The strongest argument for ACGL centers on P/E Ratio, Profit Margin, Debt/Equity. 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.
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, EPS Growth.
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 1.26 — expect wider price swings.
FAF is growing revenue faster at 5.3% — 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 56/100), 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.
First American Corporation
FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA
First American Financial Corporation, provides financial services. The company is headquartered in Santa Ana, California.
Compare with Other INSURANCE - DIVERSIFIED Stocks
Want to dig deeper into these stocks?