WallStSmart

Arch Capital Group Ltd. (ACGL)vsHeritage Financial Corporation (HFWA)

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Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 5854% more annual revenue ($18.78B vs $315.40M). HFWA leads profitability with a 24.6% profit margin vs 23.3%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 67/100 (B-).

ACGL

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 8.0Value: 7.0Quality: 6.5
Piotroski: 6/9Altman Z: 1.48

HFWA

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 6.5Value: 5.7Quality: 5.5
Piotroski: 7/9Altman Z: 0.40

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 8.7/10
P/E RatioValuation
8.8x10/10

Attractively priced relative to earnings

Profit MarginProfitability
23.3%9/10

Keeps 23 of every $100 in revenue as profit

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
26.8%8/10

Strong operational efficiency at 26.8%

Free Cash FlowQuality
$1.75B8/10

Generating 1.7B in free cash flow

HFWA6 strengths · Avg: 9.3/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Operating MarginProfitability
31.0%10/10

Strong operational efficiency at 31.0%

Revenue GrowthGrowth
31.8%10/10

Revenue surging 31.8% year-over-year

Profit MarginProfitability
24.6%9/10

Keeps 25 of every $100 in revenue as profit

Debt/EquityHealth
0.139/10

Conservative balance sheet, low leverage

P/E RatioValuation
14.3x8/10

Attractively priced relative to earnings

Areas to Watch

ACGL3 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-8.9%2/10

Revenue declined 8.9%

EPS GrowthGrowth
-15.7%2/10

Earnings declined 15.7%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

HFWA4 concerns · Avg: 3.0/10
PEG RatioValuation
2.134/10

Expensive relative to growth rate

Market CapQuality
$1.17B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

EPS GrowthGrowth
-16.5%2/10

Earnings declined 16.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Profit Margin, Debt/Equity. Profitability is solid with margins at 23.3% and operating margin at 26.8%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : HFWA

The strongest argument for HFWA centers on Price/Book, Operating Margin, Revenue Growth. Profitability is solid with margins at 24.6% and operating margin at 31.0%. Revenue growth of 31.8% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : HFWA

The primary concerns for HFWA are PEG Ratio, Market Cap, Return on Equity.

Key Dynamics to Monitor

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

HFWA carries more volatility with a beta of 0.51 — expect wider price swings.

HFWA is growing revenue faster at 31.8% — sustainability is the question.

ACGL generates stronger free cash flow (1.7B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (67/100 vs 66/100), backed by strong 23.3% 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.

Heritage Financial Corporation

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Heritage Financial Corporation is the banking holding company for Heritage Bank providing various financial services to small and medium-sized businesses and individuals in the United States. The company is headquartered in Olympia, Washington.

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