Arch Capital Group Ltd. (ACGL)vsHeritage Commerce Corp (HTBK)
ACGL
Arch Capital Group Ltd.
$99.29
+0.20%
FINANCIAL SERVICES · Cap: $34.28B
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 9730% more annual revenue ($19.23B vs $195.65M). HTBK leads profitability with a 24.4% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. HTBK earns a higher WallStSmart Score of 71/100 (B).
ACGL
Strong Buy67
out of 100
Grade: B-
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
Every $100 of equity generates 20 in profit
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 26.6%
Reasonable price relative to book value
Strong operational efficiency at 45.3%
Conservative balance sheet, low leverage
Keeps 24 of every $100 in revenue as profit
Attractively priced relative to earnings
17.7% revenue growth
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Smaller company, higher risk/reward
ROE of 6.8% — below average capital efficiency
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ACGL
The strongest argument for ACGL centers on P/E Ratio, Price/Book, Return on 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 : HTBK
The strongest argument for HTBK centers on Price/Book, Operating Margin, Debt/Equity. 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
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : HTBK
The primary concerns for HTBK are Market Cap, Return on Equity, Altman Z-Score.
Key Dynamics to Monitor
ACGL profiles as a declining 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 (1.2B), providing more financial flexibility.
Bottom Line
HTBK scores higher overall (71/100 vs 67/100), backed by strong 24.4% margins and 17.7% revenue growth. 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 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?