Arch Capital Group Ltd (ACGL)vsPennyMac Finl Svcs Inc (PFSI)
ACGL
Arch Capital Group Ltd
$94.46
+1.88%
FINANCIAL SERVICES · Cap: $34.58B
PFSI
PennyMac Finl Svcs Inc
$89.18
-2.19%
FINANCIAL SERVICES · Cap: $4.63B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd generates 476% more annual revenue ($19.93B vs $3.46B). ACGL leads profitability with a 22.1% profit margin vs 14.5%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 81/100 (A-).
ACGL
Exceptional Buy81
out of 100
Grade: A-
PFSI
Buy62
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
Attractively priced relative to earnings
Reasonable price relative to book value
Revenue surging 511.0% year-over-year
Areas to Watch
No major concerns identified
0.6% earnings growth
Weak financial health signals
Expensive relative to growth rate
Negative free cash flow — burning cash
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 : PFSI
The strongest argument for PFSI centers on P/E Ratio, Price/Book, Revenue Growth. Revenue growth of 511.0% demonstrates continued momentum.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : PFSI
The primary concerns for PFSI are EPS Growth, Piotroski F-Score, PEG Ratio. Debt-to-equity of 5.35 is elevated, increasing financial risk.
Key Dynamics to Monitor
ACGL profiles as a mature stock while PFSI is a growth play — different risk/reward profiles.
PFSI carries more volatility with a beta of 1.52 — expect wider price swings.
PFSI is growing revenue faster at 511.0% — 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 62/100), 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.
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.
Visit Website →Compare with Other INSURANCE - DIVERSIFIED Stocks
Want to dig deeper into these stocks?