WallStSmart

Arch Capital Group Ltd. (ACGL)vsFirst Commonwealth Financial (FCF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 3890% more annual revenue ($19.78B vs $495.72M). FCF leads profitability with a 31.7% profit margin vs 24.6%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 79/100 (B+).

ACGL

Strong Buy

79

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

FCF

Strong Buy

71

out of 100

Grade: B

Growth: 6.7Profit: 7.5Value: 6.3Quality: 7.0
Piotroski: 4/9Altman Z: 0.30

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.2/10
P/E RatioValuation
7.8x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

Profit MarginProfitability
24.6%9/10

Keeps 25 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

FCF5 strengths · Avg: 9.4/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
31.7%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
41.8%10/10

Strong operational efficiency at 41.8%

Debt/EquityHealth
0.139/10

Conservative balance sheet, low leverage

P/E RatioValuation
13.9x8/10

Attractively priced relative to earnings

Areas to Watch

ACGL2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

FCF1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
0.302/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, EPS Growth, Return on Equity. Profitability is solid with margins at 24.6% and operating margin at 25.3%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : FCF

The strongest argument for FCF centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 31.7% and operating margin at 41.8%. PEG of 1.46 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

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

Bear Case : FCF

The primary concerns for FCF are Altman Z-Score.

Key Dynamics to Monitor

ACGL profiles as a declining stock while FCF is a mature play — different risk/reward profiles.

FCF carries more volatility with a beta of 0.73 — expect wider price swings.

FCF is growing revenue faster at 9.1% — sustainability is the question.

ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (79/100 vs 71/100), backed by strong 24.6% margins. 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 Commonwealth Financial

FINANCIAL SERVICES · BANKS - REGIONAL · USA

First Commonwealth Financial Corporation, a financial holding company, provides a variety of consumer and commercial banking services to individuals and small and medium-sized businesses in the United States. The company is headquartered in Indiana, Pennsylvania.

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