Arch Capital Group Ltd. (ACGL)vsFederated Investors Inc B (FHI)
ACGL
Arch Capital Group Ltd.
$96.09
-0.11%
FINANCIAL SERVICES · Cap: $33.47B
FHI
Federated Investors Inc B
$59.57
-2.33%
FINANCIAL SERVICES · Cap: $4.57B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 894% more annual revenue ($19.23B vs $1.93B). ACGL leads profitability with a 24.4% profit margin vs 21.3%. ACGL appears more attractively valued with a PEG of 1.06. FHI earns a higher WallStSmart Score of 73/100 (B).
ACGL
Strong Buy67
out of 100
Grade: B-
FHI
Strong Buy73
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
Every $100 of equity generates 33 in profit
Safe zone — low bankruptcy risk
Keeps 21 of every $100 in revenue as profit
Strong operational efficiency at 27.7%
18.3% revenue growth
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
No major concerns identified
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 : FHI
The strongest argument for FHI centers on P/E Ratio, Return on Equity, Altman Z-Score. Profitability is solid with margins at 21.3% and operating margin at 27.7%. Revenue growth of 18.3% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : FHI
No major red flags identified for FHI, but monitor valuation.
Key Dynamics to Monitor
ACGL profiles as a declining stock while FHI is a growth 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 18.3% — sustainability is the question.
ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
FHI scores higher overall (73/100 vs 67/100), backed by strong 21.3% margins and 18.3% 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.
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.
Compare with Other INSURANCE - DIVERSIFIED Stocks
Want to dig deeper into these stocks?