WallStSmart

Arch Capital Group Ltd. (ACGL)vsLive Oak Bancshares, Inc. (LOB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 3761% more annual revenue ($19.78B vs $512.21M). LOB leads profitability with a 24.6% profit margin vs 24.6%. ACGL trades at a lower P/E of 7.2x. 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

LOB

Strong Buy

74

out of 100

Grade: B

Growth: 10.0Profit: 7.0Value: 6.0Quality: 5.0
Piotroski: 5/9Altman Z: -0.72

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.5x10/10

Reasonable price relative to book value

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

LOB6 strengths · Avg: 9.5/10
Operating MarginProfitability
35.5%10/10

Strong operational efficiency at 35.5%

Revenue GrowthGrowth
33.5%10/10

Revenue surging 33.5% year-over-year

EPS GrowthGrowth
185.7%10/10

Earnings expanding 185.7% YoY

Debt/EquityHealth
0.0810/10

Conservative balance sheet, low leverage

Profit MarginProfitability
24.6%9/10

Keeps 25 of every $100 in revenue as profit

P/E RatioValuation
15.6x8/10

Attractively priced relative to earnings

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

LOB2 concerns · Avg: 2.5/10
Market CapQuality
$1.89B3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
-0.722/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, EPS Growth. 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 : LOB

The strongest argument for LOB centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 24.6% and operating margin at 35.5%. Revenue growth of 33.5% demonstrates continued momentum.

Bear Case : ACGL

The primary concerns for ACGL are Revenue 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 growth play — different risk/reward profiles.

LOB carries more volatility with a beta of 1.90 — expect wider price swings.

LOB is growing revenue faster at 33.5% — sustainability is the question.

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

Bottom Line

ACGL scores higher overall (79/100 vs 74/100), 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.

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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