Arch Capital Group Ltd. (ACGL)vsFirst Merchants Corporation Depository Shares (FRMEP)
ACGL
Arch Capital Group Ltd.
$102.20
+3.70%
FINANCIAL SERVICES · Cap: $32.74B
FRMEP
First Merchants Corporation Depository Shares
$25.50
+0.12%
FINANCIAL SERVICES · Cap: $2.42B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 3001% more annual revenue ($19.78B vs $637.81M). FRMEP leads profitability with a 31.2% profit margin vs 24.6%. FRMEP trades at a lower P/E of 6.8x. ACGL earns a higher WallStSmart Score of 79/100 (B+).
ACGL
Strong Buy79
out of 100
Grade: B+
FRMEP
Hold39
out of 100
Grade: F
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Earnings expanding 94.6% YoY
Every $100 of equity generates 20 in profit
Keeps 25 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 31 of every $100 in revenue as profit
Strong operational efficiency at 22.6%
Areas to Watch
Revenue declined 3.3%
Distress zone — elevated risk
ROE of 7.4% — below average capital efficiency
Revenue declined 2.5%
Earnings declined 52.1%
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull 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 : FRMEP
The strongest argument for FRMEP centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 31.2% and operating margin at 22.6%.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, Altman Z-Score.
Bear Case : FRMEP
The primary concerns for FRMEP are Return on Equity, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
FRMEP carries more volatility with a beta of 0.86 — expect wider price swings.
FRMEP is growing revenue faster at -2.5% — sustainability is the question.
ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.
Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ACGL scores higher overall (79/100 vs 39/100), 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.
First Merchants Corporation Depository Shares
FINANCIAL SERVICES · BANKS - REGIONAL · USA
First Merchants Corporation Depository Shares (FRMEP) embody a compelling investment opportunity within the Midwest's financial services sector, supported by a well-established banking institution. The company offers a comprehensive suite of financial solutions, including commercial banking, consumer lending, and wealth management, designed to address the distinct needs of its diverse client base. First Merchants prioritizes community engagement and sustainable growth, showcasing a strong commitment to enhancing shareholder value while maintaining resilience and financial stability amid varying market conditions. This strategic focus makes First Merchants an appealing choice for institutional investors seeking reliable returns in an evolving economic landscape.
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