Arch Capital Group Ltd (ACGL)vsFirst Merchants Corporation Depository Shares (FRMEP)
ACGL
Arch Capital Group Ltd
$94.70
+0.59%
FINANCIAL SERVICES · Cap: $33.14B
FRMEP
First Merchants Corporation Depository Shares
$25.70
0.00%
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
Reasonable price relative to book value
Earnings expanding 94.6% YoY
Every $100 of equity generates 21 in profit
Keeps 25 of every $100 in revenue as profit
Conservative balance sheet, low leverage
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%
ROE of 8.0% — 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, Price/Book, EPS Growth. 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.
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 0.87 — 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 (ticker: FRMEP) serve as a key investment option within the Midwest's financial services sector, showcasing the strength of one of the region's prominent banks. The company excels in offering a comprehensive suite of services, including commercial banking, consumer lending, and wealth management, all designed to address diverse customer needs. Emphasizing strategic growth and operational resilience, First Merchants maintains a strong commitment to community-centered banking while enhancing shareholder value. Its demonstrated financial stability and consistent performance across different economic landscapes further establish its appeal to institutional investors seeking reliable opportunities.
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