WallStSmart

Arch Capital Group Ltd. (ACGL)vsSynchrony Financial (SYF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 94% more annual revenue ($19.23B vs $9.91B). SYF leads profitability with a 35.5% profit margin vs 24.4%. SYF appears more attractively valued with a PEG of 0.98. SYF earns a higher WallStSmart Score of 75/100 (B).

ACGL

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 8.0Value: 7.0Quality: 6.8
Piotroski: 6/9Altman Z: 1.48

SYF

Strong Buy

75

out of 100

Grade: B

Growth: 5.3Profit: 8.0Value: 7.7Quality: 6.0
Piotroski: 5/9Altman Z: 0.03

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
7.9x10/10

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
$2.49B8/10

Generating 2.5B in free cash flow

SYF6 strengths · Avg: 9.2/10
P/E RatioValuation
7.8x10/10

Attractively priced relative to earnings

Profit MarginProfitability
35.5%10/10

Keeps 36 of every $100 in revenue as profit

Operating MarginProfitability
50.2%10/10

Strong operational efficiency at 50.2%

Return on EquityProfitability
20.8%9/10

Every $100 of equity generates 21 in profit

PEG RatioValuation
0.988/10

Growing faster than its price suggests

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

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

SYF3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.6%4/10

0.6% revenue growth

EPS GrowthGrowth
3.6%4/10

3.6% earnings growth

Altman Z-ScoreHealth
0.032/10

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 : SYF

The strongest argument for SYF centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 35.5% and operating margin at 50.2%. PEG of 0.98 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 : SYF

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

Key Dynamics to Monitor

ACGL profiles as a declining stock while SYF is a value play — different risk/reward profiles.

SYF carries more volatility with a beta of 1.31 — expect wider price swings.

SYF is growing revenue faster at 0.6% — sustainability is the question.

ACGL generates stronger free cash flow (2.5B), providing more financial flexibility.

Bottom Line

SYF scores higher overall (75/100 vs 67/100), backed by strong 35.5% 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.

Synchrony Financial

FINANCIAL SERVICES · CREDIT SERVICES · USA

Synchrony Financial is a consumer financial services company headquartered in Stamford, Connecticut, United States. The company offers consumer financing products, including credit, promotional financing and loyalty programs, installment lending to industries, and FDIC-insured consumer savings products through Synchrony Bank, its wholly owned online bank subsidiary.

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