WallStSmart

Arch Capital Group Ltd. (ACGL)vsJefferies Financial Group Inc (JEF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 266% more annual revenue ($19.78B vs $5.40B). ACGL leads profitability with a 24.6% profit margin vs 23.0%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 79/100 (B+).

ACGL

Strong Buy

79

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

JEF

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 6.0Value: 5.7Quality: 2.5
Piotroski: 3/9Altman Z: 0.84

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.2/10
P/E RatioValuation
7.8x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

Profit MarginProfitability
24.6%9/10

Keeps 25 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

JEF6 strengths · Avg: 9.2/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
35.0%10/10

Revenue surging 35.0% year-over-year

EPS GrowthGrowth
159.8%10/10

Earnings expanding 159.8% YoY

Profit MarginProfitability
23.0%9/10

Keeps 23 of every $100 in revenue as profit

P/E RatioValuation
15.4x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.55B8/10

Generating 1.6B in free cash flow

Areas to Watch

ACGL2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

JEF4 concerns · Avg: 3.0/10
PEG RatioValuation
1.534/10

Expensive relative to growth rate

Return on EquityProfitability
7.0%3/10

ROE of 7.0% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.842/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, EPS Growth, Return on Equity. Profitability is solid with margins at 24.6% and operating margin at 25.3%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : JEF

The strongest argument for JEF centers on Price/Book, Revenue Growth, EPS Growth. Profitability is solid with margins at 23.0% and operating margin at 16.9%. Revenue growth of 35.0% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : JEF

The primary concerns for JEF are PEG Ratio, Return on Equity, Piotroski F-Score. Debt-to-equity of 3.48 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

JEF carries more volatility with a beta of 1.50 — expect wider price swings.

JEF is growing revenue faster at 35.0% — sustainability is the question.

JEF generates stronger free cash flow (1.6B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (79/100 vs 77/100), backed by strong 24.6% 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.

Jefferies Financial Group Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Jefferies Financial Group Inc. is engaged in investment banking and capital markets, asset management, and direct investment businesses in the Americas, Europe, the Middle East, Africa, and Asia. The company is headquartered in New York, New York.

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