WallStSmart

Arch Capital Group Ltd. (ACGL)vsRaymond James Financial Inc. (RJF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 26% more annual revenue ($19.23B vs $15.24B). ACGL leads profitability with a 24.4% profit margin vs 15.1%. RJF appears more attractively valued with a PEG of 0.88. RJF earns a higher WallStSmart Score of 76/100 (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

RJF

Strong Buy

76

out of 100

Grade: B+

Growth: 8.7Profit: 7.0Value: 7.0Quality: 4.5
Piotroski: 4/9Altman Z: 0.06

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

RJF5 strengths · Avg: 8.0/10
PEG RatioValuation
0.888/10

Growing faster than its price suggests

P/E RatioValuation
15.4x8/10

Attractively priced relative to earnings

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.1%8/10

15.1% revenue growth

EPS GrowthGrowth
42.0%8/10

Earnings expanding 42.0% 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

RJF1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
0.062/10

Distress zone — elevated risk

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 : RJF

The strongest argument for RJF centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 15.1% and operating margin at 19.3%. Revenue growth of 15.1% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : RJF

The primary concerns for RJF are Altman Z-Score.

Key Dynamics to Monitor

ACGL profiles as a declining stock while RJF is a growth play — different risk/reward profiles.

RJF carries more volatility with a beta of 0.92 — expect wider price swings.

RJF is growing revenue faster at 15.1% — sustainability is the question.

ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

RJF scores higher overall (76/100 vs 67/100), backed by strong 15.1% margins and 15.1% revenue growth. 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.

Raymond James Financial Inc.

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Raymond James Financial is an American multinational independent investment bank and financial services company providing financial services to individuals, corporations, and municipalities through its subsidiary companies that engage primarily in investment and financial planning, in addition to investment banking and asset management.

Visit Website →

Want to dig deeper into these stocks?