Arch Capital Group Ltd. (ACGL)vsHSBC Holdings PLC ADR (HSBC)
ACGL
Arch Capital Group Ltd.
$103.94
+1.40%
FINANCIAL SERVICES · Cap: $34.24B
HSBC
HSBC Holdings PLC ADR
$86.61
+0.27%
FINANCIAL SERVICES · Cap: $294.15B
Smart Verdict
WallStSmart Research — data-driven comparison
HSBC Holdings PLC ADR generates 251% more annual revenue ($67.44B vs $19.23B). HSBC leads profitability with a 41.2% profit margin vs 24.4%. HSBC appears more attractively valued with a PEG of 0.80. HSBC earns a higher WallStSmart Score of 73/100 (B).
ACGL
Strong Buy67
out of 100
Grade: B-
HSBC
Strong Buy73
out of 100
Grade: B
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Strong operational efficiency at 26.6%
Generating 1.3B in free cash flow
Mega-cap, among the largest globally
Attractively priced relative to earnings
Keeps 41 of every $100 in revenue as profit
Strong operational efficiency at 50.4%
Earnings expanding 56.2% YoY
Growing faster than its price suggests
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ACGL
The strongest argument for ACGL centers on P/E Ratio, Profit Margin, Debt/Equity. 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 : HSBC
The strongest argument for HSBC centers on Market Cap, P/E Ratio, Profit Margin. Profitability is solid with margins at 41.2% and operating margin at 50.4%. PEG of 0.80 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 : HSBC
The primary concerns for HSBC are Altman Z-Score.
Key Dynamics to Monitor
ACGL profiles as a declining stock while HSBC is a mature play — different risk/reward profiles.
HSBC carries more volatility with a beta of 0.58 — expect wider price swings.
HSBC is growing revenue faster at 6.0% — sustainability is the question.
Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HSBC scores higher overall (73/100 vs 67/100), backed by strong 41.2% 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.
HSBC Holdings PLC ADR
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
HSBC Holdings plc offers banking and financial products and services globally. The company is headquartered in London, the United Kingdom.
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