WallStSmart

Arch Capital Group Ltd. (ACGL)vsFinance of America Companies Inc (FOA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 4277% more annual revenue ($19.78B vs $451.89M). ACGL leads profitability with a 24.6% profit margin vs 7.2%. ACGL trades at a lower P/E of 7.8x. 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

FOA

Hold

48

out of 100

Grade: D+

Growth: 4.7Profit: 5.0Value: 6.7Quality: 3.5
Piotroski: 6/9Altman Z: 0.07

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
1.6x8/10

Reasonable price relative to book value

FOA2 strengths · Avg: 10.0/10
P/E RatioValuation
10.1x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

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

FOA4 concerns · Avg: 2.5/10
Market CapQuality
$204.20M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
7.2%3/10

7.2% margin — thin

Revenue GrowthGrowth
-27.5%2/10

Revenue declined 27.5%

EPS GrowthGrowth
-64.7%2/10

Earnings declined 64.7%

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 : FOA

The strongest argument for FOA centers on P/E Ratio, Price/Book.

Bear Case : ACGL

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

Bear Case : FOA

The primary concerns for FOA are Market Cap, Profit Margin, Revenue Growth. Debt-to-equity of 88.46 is elevated, increasing financial risk.

Key Dynamics to Monitor

ACGL profiles as a declining stock while FOA is a value play — different risk/reward profiles.

FOA carries more volatility with a beta of 1.63 — expect wider price swings.

ACGL is growing revenue faster at -3.3% — 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 48/100), backed by strong 24.6% margins. Both earn "Strong Buy" and "Hold" 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.

Finance of America Companies Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

Finance of America Companies Inc. operates a consumer loan platform in the United States. The company is headquartered in Irving, Texas.

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