Arch Capital Group Ltd. (ACGL)vsPennyMac Finl Svcs Inc (PFSI)
ACGL
Arch Capital Group Ltd.
$97.95
+1.94%
FINANCIAL SERVICES · Cap: $33.47B
PFSI
PennyMac Finl Svcs Inc
$70.36
+0.79%
FINANCIAL SERVICES · Cap: $3.74B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 477% more annual revenue ($19.23B vs $3.33B). ACGL leads profitability with a 24.4% profit margin vs 11.8%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 67/100 (B-).
ACGL
Strong Buy67
out of 100
Grade: B-
PFSI
Hold48
out of 100
Grade: D+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 26.6%
Generating 1.3B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Generating 2.0B in free cash flow
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
1.8% revenue growth
Operating margin of 4.5%
Expensive relative to growth rate
Earnings declined 83.9%
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 24.4% and operating margin at 26.6%. PEG of 1.06 suggests the stock is reasonably priced for its growth.
Bull Case : PFSI
The strongest argument for PFSI centers on P/E Ratio, Price/Book, Free Cash Flow.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : PFSI
The primary concerns for PFSI are Revenue Growth, Operating Margin, PEG Ratio. Debt-to-equity of 5.46 is elevated, increasing financial risk.
Key Dynamics to Monitor
ACGL profiles as a declining stock while PFSI is a value play — different risk/reward profiles.
PFSI carries more volatility with a beta of 1.43 — expect wider price swings.
PFSI is growing revenue faster at 1.8% — sustainability is the question.
PFSI generates stronger free cash flow (2.0B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (67/100 vs 48/100), backed by strong 24.4% margins. Both earn "Strong Buy" and "Hold" 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.
PennyMac Finl Svcs Inc
FINANCIAL SERVICES · MORTGAGE FINANCE · USA
PennyMac Financial Services, Inc. is engaged in investment management and mortgage banking activities in the United States. The company is headquartered in Westlake Village, California.
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