WallStSmart

Arch Capital Group Ltd (ACGL)vsSoFi Technologies Inc. (SOFI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 410% more annual revenue ($19.93B vs $3.91B). ACGL leads profitability with a 22.1% profit margin vs 14.8%. SOFI appears more attractively valued with a PEG of 0.99. ACGL earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

81

out of 100

Grade: A-

Growth: 8.7Profit: 8.0Value: 7.0Quality: 6.5
Piotroski: 5/9

SOFI

Strong Buy

73

out of 100

Grade: B

Growth: 10.0Profit: 5.5Value: 5.7Quality: 7.0
Piotroski: 4/9Altman Z: 0.45

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

EPS GrowthGrowth
38.8%8/10

Earnings expanding 38.8% YoY

SOFI5 strengths · Avg: 9.0/10
Revenue GrowthGrowth
42.5%10/10

Revenue surging 42.5% year-over-year

EPS GrowthGrowth
99.1%10/10

Earnings expanding 99.1% YoY

Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.998/10

Growing faster than its price suggests

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

SOFI4 concerns · Avg: 2.8/10
P/E RatioValuation
34.5x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
6.6%3/10

ROE of 6.6% — below average capital efficiency

Free Cash FlowQuality
$-1.06B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.452/10

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 22.1% and operating margin at 29.5%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : SOFI

The strongest argument for SOFI centers on Revenue Growth, EPS Growth, Debt/Equity. Revenue growth of 42.5% demonstrates continued momentum. PEG of 0.99 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

No major red flags identified for ACGL, but monitor valuation.

Bear Case : SOFI

The primary concerns for SOFI are P/E Ratio, Return on Equity, Free Cash Flow.

Key Dynamics to Monitor

ACGL profiles as a mature stock while SOFI is a growth play — different risk/reward profiles.

SOFI carries more volatility with a beta of 2.25 — expect wider price swings.

SOFI is growing revenue faster at 42.5% — 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 73/100), backed by strong 22.1% margins. Both earn "Exceptional 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.

SoFi Technologies Inc.

FINANCIAL SERVICES · CREDIT SERVICES · USA

SoFi Technologies, Inc. provides digital financial services. The company is headquartered in San Francisco, California.

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