Arch Capital Group Ltd (ACGL)vsHeritage Commerce Corp (HTBK)
ACGL
Arch Capital Group Ltd
$94.46
+1.88%
FINANCIAL SERVICES · Cap: $34.58B
HTBK
Heritage Commerce Corp
$13.45
0.00%
FINANCIAL SERVICES · Cap: $828.43M
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd generates 10086% more annual revenue ($19.93B vs $195.65M). HTBK leads profitability with a 24.4% profit margin vs 22.1%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 81/100 (A-).
ACGL
Exceptional Buy81
out of 100
Grade: A-
HTBK
Strong Buy71
out of 100
Grade: B
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 22 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 29.5%
Earnings expanding 38.8% YoY
Reasonable price relative to book value
Strong operational efficiency at 45.3%
Keeps 24 of every $100 in revenue as profit
Attractively priced relative to earnings
17.7% revenue growth
Earnings expanding 45.2% YoY
Areas to Watch
No major concerns identified
Smaller company, higher risk/reward
ROE of 6.8% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : ACGL
The strongest argument for ACGL centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 22.1% and operating margin at 29.5%. PEG of 1.06 suggests the stock is reasonably priced for its growth.
Bull Case : HTBK
The strongest argument for HTBK centers on Price/Book, Operating Margin, Profit Margin. Profitability is solid with margins at 24.4% and operating margin at 45.3%. Revenue growth of 17.7% demonstrates continued momentum.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : HTBK
The primary concerns for HTBK are Market Cap, Return on Equity.
Key Dynamics to Monitor
ACGL profiles as a mature stock while HTBK is a growth play — different risk/reward profiles.
HTBK carries more volatility with a beta of 0.68 — expect wider price swings.
HTBK is growing revenue faster at 17.7% — sustainability is the question.
ACGL generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (81/100 vs 71/100), backed by strong 22.1% margins. Both earn "Exceptional 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 Commerce Corp
FINANCIAL SERVICES · BANKS - REGIONAL · USA
Heritage Commerce Corp is the banking holding company for Heritage Bank of Commerce providing various commercial and personal banking services to residents and the business / professional community in California. The company is headquartered in San Jose, California.
Compare with Other INSURANCE - DIVERSIFIED Stocks
Want to dig deeper into these stocks?