Arch Capital Group Ltd. (ACGL)vsFlagstar Financial, Inc. (FLG)
ACGL
Arch Capital Group Ltd.
$97.95
+1.94%
FINANCIAL SERVICES · Cap: $33.47B
FLG
Flagstar Financial, Inc.
$13.18
-0.68%
FINANCIAL SERVICES · Cap: $5.61B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 847% more annual revenue ($19.23B vs $2.03B). ACGL leads profitability with a 24.4% profit margin vs 2.4%. FLG appears more attractively valued with a PEG of 0.47. ACGL earns a higher WallStSmart Score of 67/100 (B-).
ACGL
Strong Buy67
out of 100
Grade: B-
FLG
Buy62
out of 100
Grade: C+
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
Growing faster than its price suggests
Reasonable price relative to book value
Strong operational efficiency at 20.3%
15.3% revenue growth
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
0.0% earnings growth
2.4% margin — thin
Elevated debt levels
Premium valuation, high expectations priced in
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 : FLG
The strongest argument for FLG centers on PEG Ratio, Price/Book, Operating Margin. Revenue growth of 15.3% demonstrates continued momentum. PEG of 0.47 suggests the stock is reasonably priced for its growth.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : FLG
The primary concerns for FLG are EPS Growth, Profit Margin, Debt/Equity. A P/E of 450.7x leaves little room for execution misses. Thin 2.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
ACGL profiles as a declining stock while FLG is a growth play — different risk/reward profiles.
FLG carries more volatility with a beta of 0.99 — expect wider price swings.
FLG is growing revenue faster at 15.3% — sustainability is the question.
ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (67/100 vs 62/100), backed by strong 24.4% margins. Both earn "Strong Buy" and "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.
Flagstar Financial, Inc.
FINANCIAL SERVICES · BANKS - REGIONAL · USA
Flagstar Financial, Inc. is the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company is headquartered in Hicksville, New York.
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