WallStSmart

Arch Capital Group Ltd. (ACGL)vsFive Star Bancorp (FSBC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 12439% more annual revenue ($19.78B vs $157.73M). FSBC leads profitability with a 42.5% profit margin vs 24.6%. ACGL trades at a lower P/E of 7.0x. 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

FSBC

Strong Buy

67

out of 100

Grade: B-

Growth: 9.3Profit: 7.5Value: 6.0Quality: 5.0
Piotroski: 5/9Altman Z: -0.70

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

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

FSBC6 strengths · Avg: 8.8/10
Profit MarginProfitability
42.5%10/10

Keeps 43 of every $100 in revenue as profit

Operating MarginProfitability
60.3%10/10

Strong operational efficiency at 60.3%

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

P/E RatioValuation
13.7x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
26.9%8/10

Revenue surging 26.9% year-over-year

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

FSBC2 concerns · Avg: 2.5/10
Market CapQuality
$919.60M3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
-0.702/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull 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 : FSBC

The strongest argument for FSBC centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 42.5% and operating margin at 60.3%. Revenue growth of 26.9% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : FSBC

The primary concerns for FSBC are Market Cap, Altman Z-Score.

Key Dynamics to Monitor

ACGL profiles as a declining stock while FSBC is a growth play — different risk/reward profiles.

FSBC carries more volatility with a beta of 0.54 — expect wider price swings.

FSBC is growing revenue faster at 26.9% — 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 67/100), backed by strong 24.6% margins. Both earn "Strong Buy" and "Strong 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.

Five Star Bancorp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Five Star Bancorp is the banking holding company for Five Star Bank offering a range of banking products and services to small and medium-sized businesses, professionals and individuals. The company is headquartered in Rancho Cordova, California.

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