WallStSmart

Arch Capital Group Ltd. (ACGL)vsLake Shore Bancorp Inc (LSBK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 67276% more annual revenue ($19.78B vs $29.35M). LSBK leads profitability with a 27.7% profit margin vs 24.6%. ACGL trades at a lower P/E of 7.9x. 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

LSBK

Buy

64

out of 100

Grade: C+

Growth: 8.7Profit: 7.0Value: 6.0Quality: 3.8
Piotroski: 5/9Altman Z: 0.51

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

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
1.5x8/10

Reasonable price relative to book value

LSBK6 strengths · Avg: 9.2/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Operating MarginProfitability
32.5%10/10

Strong operational efficiency at 32.5%

EPS GrowthGrowth
88.2%10/10

Earnings expanding 88.2% YoY

Profit MarginProfitability
27.7%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
15.9x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
21.7%8/10

Revenue surging 21.7% year-over-year

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

LSBK3 concerns · Avg: 2.7/10
Market CapQuality
$136.66M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.7%3/10

ROE of 5.7% — below average capital efficiency

Altman Z-ScoreHealth
0.512/10

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 : LSBK

The strongest argument for LSBK centers on Price/Book, Operating Margin, EPS Growth. Profitability is solid with margins at 27.7% and operating margin at 32.5%. Revenue growth of 21.7% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : LSBK

The primary concerns for LSBK are Market Cap, Return on Equity, Altman Z-Score.

Key Dynamics to Monitor

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

LSBK carries more volatility with a beta of 0.30 — expect wider price swings.

LSBK is growing revenue faster at 21.7% — 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 64/100), backed by strong 24.6% margins. Both earn "Strong Buy" and "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.

Lake Shore Bancorp Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Lake Shore Bancorp, Inc. is the savings and loan holding company of Lake Shore Savings Bank offering banking products and services.

Visit Website →

Want to dig deeper into these stocks?