Arch Capital Group Ltd. (ACGL)vsFederated Investors Inc B (FHI)
ACGL
Arch Capital Group Ltd.
$88.34
-0.17%
FINANCIAL SERVICES · Cap: $32.03B
FHI
Federated Investors Inc B
$57.03
+0.18%
FINANCIAL SERVICES · Cap: $4.42B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 966% more annual revenue ($19.78B vs $1.86B). ACGL leads profitability with a 24.6% profit margin vs 21.5%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 79/100 (B+).
ACGL
Strong Buy79
out of 100
Grade: B+
FHI
Strong Buy65
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
Earnings expanding 94.6% YoY
Every $100 of equity generates 20 in profit
Keeps 25 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Every $100 of equity generates 33 in profit
Safe zone — low bankruptcy risk
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 26.4%
Areas to Watch
Revenue declined 3.3%
Distress zone — elevated risk
Expensive relative to growth rate
1.6% earnings growth
Comparative Analysis Report
WallStSmart ResearchBull Case : ACGL
The strongest argument for ACGL centers on P/E Ratio, Price/Book, EPS Growth. 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 : FHI
The strongest argument for FHI centers on P/E Ratio, Return on Equity, Altman Z-Score. Profitability is solid with margins at 21.5% and operating margin at 26.4%. Revenue growth of 13.1% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, Altman Z-Score.
Bear Case : FHI
The primary concerns for FHI are PEG Ratio, EPS Growth.
Key Dynamics to Monitor
ACGL profiles as a declining stock while FHI is a mature play — different risk/reward profiles.
FHI carries more volatility with a beta of 0.63 — expect wider price swings.
FHI is growing revenue faster at 13.1% — 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 65/100), 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.
Federated Investors Inc B
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
Federated Hermes, Inc. is a publicly owned asset management portfolio company. The company is headquartered in Pittsburgh, Pennsylvania with additional offices in New York City and London, United Kingdom.
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