Arch Capital Group Ltd (ACGL)vsMerchants Bancorp (MBIN)
ACGL
Arch Capital Group Ltd
$94.46
+1.88%
FINANCIAL SERVICES · Cap: $34.58B
MBIN
Merchants Bancorp
$46.54
+3.42%
FINANCIAL SERVICES · Cap: $2.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd generates 3435% more annual revenue ($19.93B vs $563.69M). MBIN leads profitability with a 38.8% profit margin vs 22.1%. ACGL trades at a lower P/E of 8.4x. ACGL earns a higher WallStSmart Score of 81/100 (A-).
ACGL
Exceptional Buy81
out of 100
Grade: A-
MBIN
Buy51
out of 100
Grade: C-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 22 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 29.5%
Earnings expanding 38.8% YoY
Reasonable price relative to book value
Keeps 39 of every $100 in revenue as profit
Strong operational efficiency at 52.0%
Attractively priced relative to earnings
Areas to Watch
No major concerns identified
Elevated debt levels
Weak financial health signals
Revenue declined 17.6%
Earnings declined 30.6%
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 22.1% and operating margin at 29.5%. PEG of 1.06 suggests the stock is reasonably priced for its growth.
Bull Case : MBIN
The strongest argument for MBIN centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 38.8% and operating margin at 52.0%.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : MBIN
The primary concerns for MBIN are Debt/Equity, Piotroski F-Score, Revenue Growth. Debt-to-equity of 1.68 is elevated, increasing financial risk.
Key Dynamics to Monitor
ACGL profiles as a mature stock while MBIN is a declining play — different risk/reward profiles.
MBIN carries more volatility with a beta of 1.16 — expect wider price swings.
ACGL is growing revenue faster at 8.5% — sustainability is the question.
ACGL generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (81/100 vs 51/100), backed by strong 22.1% margins. Both earn "Exceptional 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.
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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