Arch Capital Group Ltd. (ACGL)vsProsperity Bancshares Inc (PB)
ACGL
Arch Capital Group Ltd.
$101.14
-3.26%
FINANCIAL SERVICES · Cap: $35.41B
PB
Prosperity Bancshares Inc
$74.82
+0.79%
FINANCIAL SERVICES · Cap: $8.81B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 1409% more annual revenue ($19.78B vs $1.31B). PB leads profitability with a 40.4% profit margin vs 24.6%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 79/100 (B+).
ACGL
Strong Buy79
out of 100
Grade: B+
PB
Buy59
out of 100
Grade: C
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Earnings expanding 94.6% YoY
Every $100 of equity generates 20 in profit
Keeps 25 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Reasonable price relative to book value
Keeps 40 of every $100 in revenue as profit
Strong operational efficiency at 55.6%
Attractively priced relative to earnings
19.9% revenue growth
Areas to Watch
Revenue declined 3.3%
Distress zone — elevated risk
ROE of 6.4% — below average capital efficiency
Expensive relative to growth rate
Earnings declined 15.1%
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull 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 : PB
The strongest argument for PB centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 40.4% and operating margin at 55.6%. Revenue growth of 19.9% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, Altman Z-Score.
Bear Case : PB
The primary concerns for PB are Return on Equity, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
ACGL profiles as a declining stock while PB is a growth play — different risk/reward profiles.
PB carries more volatility with a beta of 0.65 — expect wider price swings.
PB is growing revenue faster at 19.9% — 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 59/100), 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.
Prosperity Bancshares Inc
FINANCIAL SERVICES · BANKS - REGIONAL · USA
Prosperity Bancshares, Inc. is a banking holding company for Prosperity Bank providing retail and commercial banking services to businesses and consumers. The company is headquartered in Houston, Texas.
Visit Website →Compare with Other INSURANCE - DIVERSIFIED Stocks
Want to dig deeper into these stocks?