WallStSmart

Arch Capital Group Ltd. (ACGL)vsInteractive Brokers Group Inc (IBKR)

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Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 172% more annual revenue ($19.23B vs $7.06B). ACGL leads profitability with a 24.4% profit margin vs 16.7%. 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

IBKR

Strong Buy

66

out of 100

Grade: B-

Growth: 8.0Profit: 7.5Value: 5.7Quality: 5.0
Piotroski: 2/9Altman Z: 0.39

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 8.7/10
P/E RatioValuation
8.2x10/10

Attractively priced relative to earnings

Profit MarginProfitability
24.4%9/10

Keeps 24 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
26.6%8/10

Strong operational efficiency at 26.6%

Free Cash FlowQuality
$1.75B8/10

Generating 1.7B in free cash flow

IBKR4 strengths · Avg: 9.3/10
Operating MarginProfitability
77.7%10/10

Strong operational efficiency at 77.7%

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Market CapQuality
$131.02B9/10

Large-cap with strong market position

Free Cash FlowQuality
$6.20B8/10

Generating 6.2B in free cash flow

Areas to Watch

ACGL3 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-10.5%2/10

Revenue declined 10.5%

EPS GrowthGrowth
-7.1%2/10

Earnings declined 7.1%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

IBKR3 concerns · Avg: 3.0/10
P/E RatioValuation
29.4x4/10

Moderate valuation

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.392/10

Distress zone — elevated risk

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 24.4% and operating margin at 26.6%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : IBKR

The strongest argument for IBKR centers on Operating Margin, Debt/Equity, Market Cap. Profitability is solid with margins at 16.7% and operating margin at 77.7%. Revenue growth of 13.5% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : IBKR

The primary concerns for IBKR are P/E Ratio, Piotroski F-Score, Altman Z-Score.

Key Dynamics to Monitor

ACGL profiles as a declining stock while IBKR is a mature play — different risk/reward profiles.

IBKR carries more volatility with a beta of 1.37 — expect wider price swings.

IBKR is growing revenue faster at 13.5% — sustainability is the question.

IBKR generates stronger free cash flow (6.2B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (67/100 vs 66/100), backed by strong 24.4% 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.

Interactive Brokers Group Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Interactive Brokers Group, Inc. is a global automated electronic broker. The company is headquartered in Greenwich, Connecticut.

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