WallStSmart

Arch Capital Group Ltd. (ACGL)vsKeyCorp (KEY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 161% more annual revenue ($19.23B vs $7.37B). KEY leads profitability with a 27.5% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. KEY earns a higher WallStSmart Score of 77/100 (B+).

ACGL

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

KEY

Strong Buy

77

out of 100

Grade: B+

Growth: 7.3Profit: 7.5Value: 5.7Quality: 4.5
Piotroski: 6/9Altman Z: 0.06

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.2/10
P/E RatioValuation
7.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

KEY5 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
34.9%10/10

Strong operational efficiency at 34.9%

Profit MarginProfitability
27.5%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
13.2x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
25.3%8/10

Earnings expanding 25.3% YoY

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

KEY3 concerns · Avg: 2.7/10
PEG RatioValuation
1.694/10

Expensive relative to growth rate

Free Cash FlowQuality
$-74.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.062/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull 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 : KEY

The strongest argument for KEY centers on Price/Book, Operating Margin, Profit Margin. Profitability is solid with margins at 27.5% and operating margin at 34.9%. Revenue growth of 10.1% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : KEY

The primary concerns for KEY are PEG Ratio, Free Cash Flow, Altman Z-Score.

Key Dynamics to Monitor

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

KEY carries more volatility with a beta of 1.02 — expect wider price swings.

KEY is growing revenue faster at 10.1% — sustainability is the question.

ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.

Bottom Line

KEY scores higher overall (77/100 vs 67/100), backed by strong 27.5% margins and 10.1% 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.

KeyCorp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

KeyBank, the primary subsidiary of KeyCorp, is a regional bank headquartered in Cleveland.

Want to dig deeper into these stocks?