WallStSmart

Arch Capital Group Ltd. (ACGL)vsTexas Capital Bancshares, Inc. (TCBIO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 1414% more annual revenue ($19.23B vs $1.27B). TCBIO leads profitability with a 28.7% profit margin vs 24.4%. TCBIO trades at a lower P/E of 5.0x. ACGL earns a higher WallStSmart Score of 67/100 (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

TCBIO

Hold

48

out of 100

Grade: D+

Growth: 7.3Profit: 7.5Value: 6.7Quality: 7.5
Piotroski: 6/9Altman Z: -0.63

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
7.6x10/10

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

TCBIO5 strengths · Avg: 9.6/10
P/E RatioValuation
5.0x10/10

Attractively priced relative to earnings

Price/BookValuation
0.3x10/10

Reasonable price relative to book value

Operating MarginProfitability
36.7%10/10

Strong operational efficiency at 36.7%

Profit MarginProfitability
28.7%9/10

Keeps 29 of every $100 in revenue as profit

Debt/EquityHealth
0.239/10

Conservative balance sheet, low leverage

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

TCBIO1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
-0.632/10

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 : TCBIO

The strongest argument for TCBIO centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 28.7% and operating margin at 36.7%.

Bear Case : ACGL

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

Bear Case : TCBIO

The primary concerns for TCBIO are Altman Z-Score.

Key Dynamics to Monitor

ACGL profiles as a declining stock while TCBIO is a mature play — different risk/reward profiles.

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

TCBIO 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

ACGL scores higher overall (67/100 vs 48/100), backed by strong 24.4% margins. Both earn "Strong Buy" and "Hold" 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. (TCBIO), headquartered in Dallas, Texas, is a leading regional bank that provides a comprehensive suite of financial services to both commercial and individual clients. The bank excels in delivering customized solutions, including business lending, treasury management, and personal banking, underpinned by a strong focus on client relationships and local market knowledge. With a strategic emphasis on prudent risk management and sustainable growth, TCBIO is optimally positioned to thrive in the competitive banking landscape while enhancing long-term shareholder value.

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