WallStSmart

Arch Capital Group Ltd (ACGL)vsFinancial Institutions Inc (FISI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 8223% more annual revenue ($19.93B vs $239.43M). FISI leads profitability with a 33.0% profit margin vs 22.1%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

81

out of 100

Grade: A-

Growth: 8.7Profit: 8.0Value: 7.0Quality: 6.5
Piotroski: 5/9

FISI

Strong Buy

76

out of 100

Grade: B+

Growth: 7.3Profit: 7.5Value: 7.0Quality: 7.3
Piotroski: 5/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

EPS GrowthGrowth
38.8%8/10

Earnings expanding 38.8% YoY

FISI5 strengths · Avg: 9.6/10
P/E RatioValuation
8.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
33.0%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
42.9%10/10

Strong operational efficiency at 42.9%

EPS GrowthGrowth
28.4%8/10

Earnings expanding 28.4% YoY

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

FISI1 concerns · Avg: 3.0/10
Market CapQuality
$663.62M3/10

Smaller company, higher risk/reward

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 22.1% and operating margin at 29.5%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : FISI

The strongest argument for FISI centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 33.0% and operating margin at 42.9%. Revenue growth of 11.3% demonstrates continued momentum.

Bear Case : ACGL

No major red flags identified for ACGL, but monitor valuation.

Bear Case : FISI

The primary concerns for FISI are Market Cap.

Key Dynamics to Monitor

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

FISI is growing revenue faster at 11.3% — sustainability is the question.

ACGL generates stronger free cash flow (1.4B), providing more financial flexibility.

Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ACGL scores higher overall (81/100 vs 76/100), backed by strong 22.1% margins. Both earn "Exceptional 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.

Financial Institutions Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Financial Institutions, Inc. is a holding company of the Five Star Bank that provides banking and financial services to individuals, municipalities and businesses. The company is headquartered in Warsaw, New York.

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