Arch Capital Group Ltd. (ACGL)vsLive Oak Bancshares, Inc. (LOB)
ACGL
Arch Capital Group Ltd.
$94.66
-0.38%
FINANCIAL SERVICES · Cap: $33.06B
LOB
Live Oak Bancshares, Inc.
$37.27
+0.49%
FINANCIAL SERVICES · Cap: $1.75B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 3554% more annual revenue ($19.23B vs $526.38M). LOB leads profitability with a 26.5% profit margin vs 24.4%. ACGL trades at a lower P/E of 7.6x. LOB earns a higher WallStSmart Score of 70/100 (B-).
ACGL
Strong Buy67
out of 100
Grade: B-
LOB
Strong Buy70
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 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 26.6%
Generating 1.3B in free cash flow
Reasonable price relative to book value
Strong operational efficiency at 38.8%
Conservative balance sheet, low leverage
Keeps 27 of every $100 in revenue as profit
Attractively priced relative to earnings
Earnings expanding 45.1% YoY
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Smaller company, higher risk/reward
Distress zone — elevated risk
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 24.4% and operating margin at 26.6%. PEG of 1.06 suggests the stock is reasonably priced for its growth.
Bull Case : LOB
The strongest argument for LOB centers on Price/Book, Operating Margin, Debt/Equity. Profitability is solid with margins at 26.5% and operating margin at 38.8%. Revenue growth of 12.2% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : LOB
The primary concerns for LOB are Market Cap, Altman Z-Score.
Key Dynamics to Monitor
ACGL profiles as a declining stock while LOB is a mature play — different risk/reward profiles.
LOB carries more volatility with a beta of 1.87 — expect wider price swings.
LOB is growing revenue faster at 12.2% — sustainability is the question.
ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
LOB scores higher overall (70/100 vs 67/100), backed by strong 26.5% margins and 12.2% 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.
Live Oak Bancshares, Inc.
FINANCIAL SERVICES · BANKS - REGIONAL · USA
Live Oak Bancshares, Inc. is the banking holding company for Live Oak Banking Company offering a variety of commercial banking products and services to individuals, small businesses and professionals in North Carolina, United States. The company is headquartered in Wilmington, North Carolina.
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