WallStSmart

Arch Capital Group Ltd. (ACGL)vsProvident Financial Holdings Inc (PROV)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 47261% more annual revenue ($19.23B vs $40.61M). ACGL leads profitability with a 24.4% profit margin vs 16.4%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 67/100 (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

PROV

Strong Buy

65

out of 100

Grade: B-

Growth: 8.0Profit: 6.5Value: 4.3Quality: 4.8
Piotroski: 6/9

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

PROV3 strengths · Avg: 8.7/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Operating MarginProfitability
29.0%8/10

Strong operational efficiency at 29.0%

EPS GrowthGrowth
41.6%8/10

Earnings expanding 41.6% 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

PROV4 concerns · Avg: 2.8/10
Market CapQuality
$116.58M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
4.8%3/10

ROE of 4.8% — below average capital efficiency

Debt/EquityHealth
1.243/10

Elevated debt levels

PEG RatioValuation
4.002/10

Expensive relative to growth rate

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 : PROV

The strongest argument for PROV centers on Price/Book, Operating Margin, EPS Growth. Profitability is solid with margins at 16.4% and operating margin at 29.0%. Revenue growth of 10.3% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : PROV

The primary concerns for PROV are Market Cap, Return on Equity, Debt/Equity.

Key Dynamics to Monitor

ACGL profiles as a declining stock while PROV is a mature play — different risk/reward profiles.

PROV carries more volatility with a beta of 0.32 — expect wider price swings.

PROV is growing revenue faster at 10.3% — sustainability is the question.

Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ACGL scores higher overall (67/100 vs 65/100), backed by strong 24.4% margins. 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.

Provident Financial Holdings Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Provident Financial Holdings, Inc. is the parent company of Provident Savings Bank, FSB providing community banking services to consumers and small and medium-sized businesses in the Inland Empire region of Southern California. The company is headquartered in Riverside, California.

Want to dig deeper into these stocks?