WallStSmart

Arch Capital Group Ltd. (ACGL)vsLPL Financial Holdings Inc (LPLA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 11% more annual revenue ($19.78B vs $17.84B). ACGL leads profitability with a 24.6% profit margin vs 5.0%. LPLA appears more attractively valued with a PEG of 0.42. 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: 6.5
Piotroski: 5/9

LPLA

Strong Buy

68

out of 100

Grade: B-

Growth: 8.0Profit: 6.0Value: 7.0Quality: 3.5
Piotroski: 1/9Altman Z: 1.77

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 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

LPLA3 strengths · Avg: 9.7/10
PEG RatioValuation
0.4210/10

Growing faster than its price suggests

Revenue GrowthGrowth
35.0%10/10

Revenue surging 35.0% year-over-year

Return on EquityProfitability
20.4%9/10

Every $100 of equity generates 20 in profit

Areas to Watch

ACGL1 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

LPLA4 concerns · Avg: 3.8/10
P/E RatioValuation
28.7x4/10

Moderate valuation

EPS GrowthGrowth
4.5%4/10

4.5% earnings growth

Altman Z-ScoreHealth
1.774/10

Distress zone — elevated risk

Profit MarginProfitability
5.0%3/10

5.0% margin — thin

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 : LPLA

The strongest argument for LPLA centers on PEG Ratio, Revenue Growth, Return on Equity. Revenue growth of 35.0% demonstrates continued momentum. PEG of 0.42 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth.

Bear Case : LPLA

The primary concerns for LPLA are P/E Ratio, EPS Growth, Altman Z-Score.

Key Dynamics to Monitor

ACGL profiles as a declining stock while LPLA is a hypergrowth play — different risk/reward profiles.

LPLA carries more volatility with a beta of 0.57 — expect wider price swings.

LPLA is growing revenue faster at 35.0% — 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 68/100), 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.

LPL Financial Holdings Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

LPL Financial Holdings Inc., provides an integrated platform of brokerage and investment advisory services to independent financial advisers and financial advisers at financial institutions in the United States. The company is headquartered in San Diego, California.

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