Arch Capital Group Ltd. (ACGL)vsTexas Capital Bancshares, Inc. (TCBI)
ACGL
Arch Capital Group Ltd.
$96.09
-0.11%
FINANCIAL SERVICES · Cap: $33.47B
TCBI
Texas Capital Bancshares, Inc.
$99.09
+0.19%
FINANCIAL SERVICES · Cap: $4.26B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 1414% more annual revenue ($19.23B vs $1.27B). TCBI leads profitability with a 28.7% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. TCBI earns a higher WallStSmart Score of 73/100 (B).
ACGL
Strong Buy67
out of 100
Grade: B-
TCBI
Strong Buy73
out of 100
Grade: B
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 1.3B in free cash flow
Reasonable price relative to book value
Strong operational efficiency at 36.7%
Keeps 29 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Distress zone — elevated risk
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 : TCBI
The strongest argument for TCBI centers on Price/Book, Operating Margin, Profit Margin. Profitability is solid with margins at 28.7% and operating margin at 36.7%. PEG of 1.47 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 : TCBI
The primary concerns for TCBI are Altman Z-Score.
Key Dynamics to Monitor
ACGL profiles as a declining stock while TCBI is a mature play — different risk/reward profiles.
TCBI carries more volatility with a beta of 0.67 — expect wider price swings.
TCBI is growing revenue faster at 8.6% — sustainability is the question.
ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
TCBI scores higher overall (73/100 vs 67/100), backed by strong 28.7% 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.
Texas Capital Bancshares, Inc.
FINANCIAL SERVICES · BANKS - REGIONAL · USA
Texas Capital Bancshares, Inc. is the banking holding company for Texas Capital Bank, a National Association that offers various banking products and services for commercial companies, professionals and entrepreneurs. The company is headquartered in Dallas, Texas.
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