Arch Capital Group Ltd. (ACGL)vsFirst Merchants Corporation (FRME)
ACGL
Arch Capital Group Ltd.
$97.95
+1.94%
FINANCIAL SERVICES · Cap: $33.47B
FRME
First Merchants Corporation
$41.11
+0.02%
FINANCIAL SERVICES · Cap: $2.59B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 2895% more annual revenue ($19.23B vs $642.19M). FRME leads profitability with a 29.0% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 67/100 (B-).
ACGL
Strong Buy67
out of 100
Grade: B-
FRME
Buy63
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
Reasonable price relative to book value
Strong operational efficiency at 34.3%
Keeps 29 of every $100 in revenue as profit
Attractively priced relative to earnings
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
2.8% revenue growth
ROE of 7.4% — below average capital efficiency
Earnings declined 28.7%
Distress zone — elevated risk
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 : FRME
The strongest argument for FRME centers on Price/Book, Operating Margin, Profit Margin. Profitability is solid with margins at 29.0% and operating margin at 34.3%. PEG of 1.40 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 : FRME
The primary concerns for FRME are Revenue Growth, Return on Equity, EPS Growth.
Key Dynamics to Monitor
ACGL profiles as a declining stock while FRME is a value play — different risk/reward profiles.
FRME carries more volatility with a beta of 0.85 — expect wider price swings.
FRME is growing revenue faster at 2.8% — 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 63/100), 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.
First Merchants Corporation
FINANCIAL SERVICES · BANKS - REGIONAL · USA
First Merchants Corporation is the financial holding company for First Merchants Bank providing community banking services. The company is headquartered in Muncie, Indiana.
Compare with Other INSURANCE - DIVERSIFIED Stocks
Want to dig deeper into these stocks?