WallStSmart

Arch Capital Group Ltd. (ACGL)vsFirst Business Financial Services (FBIZ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 11251% more annual revenue ($19.23B vs $169.43M). FBIZ leads profitability with a 32.8% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. FBIZ earns a higher WallStSmart Score of 80/100 (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

FBIZ

Strong Buy

80

out of 100

Grade: B+

Growth: 9.3Profit: 7.5Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 0.26

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

FBIZ6 strengths · Avg: 9.0/10
P/E RatioValuation
10.7x10/10

Attractively priced relative to earnings

Profit MarginProfitability
32.8%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
39.5%10/10

Strong operational efficiency at 39.5%

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.5%8/10

16.5% revenue growth

EPS GrowthGrowth
36.3%8/10

Earnings expanding 36.3% YoY

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

FBIZ3 concerns · Avg: 2.7/10
Market CapQuality
$584.11M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.513/10

Elevated debt levels

Altman Z-ScoreHealth
0.262/10

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 : FBIZ

The strongest argument for FBIZ centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 32.8% and operating margin at 39.5%. Revenue growth of 16.5% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : FBIZ

The primary concerns for FBIZ are Market Cap, Debt/Equity, Altman Z-Score. Debt-to-equity of 1.51 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

FBIZ carries more volatility with a beta of 0.65 — expect wider price swings.

FBIZ is growing revenue faster at 16.5% — sustainability is the question.

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

Bottom Line

FBIZ scores higher overall (80/100 vs 67/100), backed by strong 32.8% margins and 16.5% 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 Business Financial Services

FINANCIAL SERVICES · BANKS - REGIONAL · USA

First Business Financial Services, Inc. is the banking holding company for First Business Bank providing commercial banking products and services for small and medium-sized businesses, business owners, executives, professionals and high net worth individuals. The company is headquartered in Madison, Wisconsin.

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