Arch Capital Group Ltd. (ACGL)vsPayPal Holdings Inc (PYPL)
ACGL
Arch Capital Group Ltd.
$98.26
+0.02%
FINANCIAL SERVICES · Cap: $34.28B
PYPL
PayPal Holdings Inc
$59.00
-0.12%
FINANCIAL SERVICES · Cap: $48.94B
Smart Verdict
WallStSmart Research — data-driven comparison
PayPal Holdings Inc generates 77% more annual revenue ($34.13B vs $19.23B). ACGL leads profitability with a 24.4% profit margin vs 14.4%. PYPL 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-
PYPL
Buy63
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 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 26.6%
Generating 2.5B in free cash flow
Attractively priced relative to earnings
Every $100 of equity generates 25 in profit
Reasonable price relative to book value
Generating 1.8B in free cash flow
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
4.8% revenue growth
Distress zone — elevated risk
Earnings declined 3.1%
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 : PYPL
The strongest argument for PYPL centers on P/E Ratio, Return on Equity, Price/Book. PEG of 1.06 suggests the stock is reasonably priced for its growth.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : PYPL
The primary concerns for PYPL are Revenue Growth, Altman Z-Score, EPS Growth.
Key Dynamics to Monitor
ACGL profiles as a declining stock while PYPL is a value play — different risk/reward profiles.
PYPL carries more volatility with a beta of 1.33 — expect wider price swings.
PYPL is growing revenue faster at 4.8% — sustainability is the question.
ACGL generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (67/100 vs 63/100), backed by strong 24.4% 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.
PayPal Holdings Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
PayPal Holdings, Inc. is an American company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper methods like checks and money orders. The company operates as a payment processor for online vendors, auction sites, and many other commercial users, for which it charges a fee.
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