WallStSmart

Arch Capital Group Ltd. (ACGL)vsSouthern First Bancshares Inc (SFST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 14830% more annual revenue ($19.23B vs $128.81M). SFST leads profitability with a 30.7% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. SFST earns a higher WallStSmart Score of 71/100 (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

SFST

Strong Buy

71

out of 100

Grade: B

Growth: 9.3Profit: 7.5Value: 5.7Quality: 6.5
Piotroski: 6/9Altman Z: -0.77

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

SFST6 strengths · Avg: 9.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Profit MarginProfitability
30.7%10/10

Keeps 31 of every $100 in revenue as profit

Operating MarginProfitability
44.0%10/10

Strong operational efficiency at 44.0%

P/E RatioValuation
13.6x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
24.8%8/10

Revenue surging 24.8% year-over-year

EPS GrowthGrowth
48.1%8/10

Earnings expanding 48.1% 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

SFST3 concerns · Avg: 3.0/10
PEG RatioValuation
2.314/10

Expensive relative to growth rate

Market CapQuality
$597.86M3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
-0.772/10

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 : SFST

The strongest argument for SFST centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 30.7% and operating margin at 44.0%. Revenue growth of 24.8% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : SFST

The primary concerns for SFST are PEG Ratio, Market Cap, Altman Z-Score.

Key Dynamics to Monitor

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

SFST carries more volatility with a beta of 0.67 — expect wider price swings.

SFST is growing revenue faster at 24.8% — sustainability is the question.

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

Bottom Line

SFST scores higher overall (71/100 vs 67/100), backed by strong 30.7% margins and 24.8% 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.

Southern First Bancshares Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Southern First Bancshares, Inc. is the banking holding company for Southern First Bank offering various banking products and services to the general public in South Carolina, North Carolina and Georgia. The company is headquartered in Greenville, South Carolina.

Want to dig deeper into these stocks?