WallStSmart

Arch Capital Group Ltd. (ACGL)vsMerchants Bancorp (MBIN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 2941% more annual revenue ($19.23B vs $632.34M). MBIN leads profitability with a 42.5% profit margin vs 24.4%. ACGL trades at a lower P/E of 7.7x. MBIN earns a higher WallStSmart Score of 75/100 (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

MBIN

Strong Buy

75

out of 100

Grade: B+

Growth: 10.0Profit: 7.5Value: 6.7Quality: 3.0
Piotroski: 3/9Altman Z: 0.80

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
7.7x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

Free Cash FlowQuality
$1.31B8/10

Generating 1.3B in free cash flow

MBIN6 strengths · Avg: 10.0/10
P/E RatioValuation
10.7x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Profit MarginProfitability
42.5%10/10

Keeps 43 of every $100 in revenue as profit

Operating MarginProfitability
61.1%10/10

Strong operational efficiency at 61.1%

Revenue GrowthGrowth
37.1%10/10

Revenue surging 37.1% year-over-year

EPS GrowthGrowth
146.7%10/10

Earnings expanding 146.7% 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

MBIN3 concerns · Avg: 2.7/10
Debt/EquityHealth
1.793/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.802/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, 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 : MBIN

The strongest argument for MBIN centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 42.5% and operating margin at 61.1%. Revenue growth of 37.1% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : MBIN

The primary concerns for MBIN are Debt/Equity, Piotroski F-Score, Altman Z-Score. Debt-to-equity of 1.79 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

MBIN carries more volatility with a beta of 1.16 — expect wider price swings.

MBIN is growing revenue faster at 37.1% — sustainability is the question.

ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

MBIN scores higher overall (75/100 vs 67/100), backed by strong 42.5% margins and 37.1% 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.

Merchants Bancorp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Merchants Bancorp is the diversified bank holding company in the United States. The company is headquartered in Carmel, Indiana.

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