WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 1500% more annual revenue ($19.93B vs $1.25B). TCBIO leads profitability with a 28.7% profit margin vs 22.1%. TCBIO trades at a lower P/E of 5.5x. 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

TCBIO

Buy

54

out of 100

Grade: C-

Growth: 8.7Profit: 7.5Value: 6.7Quality: 5.5
Piotroski: 7/9Altman Z: -0.54

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

TCBIO6 strengths · Avg: 9.7/10
P/E RatioValuation
5.5x10/10

Attractively priced relative to earnings

Price/BookValuation
0.3x10/10

Reasonable price relative to book value

Operating MarginProfitability
32.2%10/10

Strong operational efficiency at 32.2%

EPS GrowthGrowth
69.6%10/10

Earnings expanding 69.6% YoY

Profit MarginProfitability
28.7%9/10

Keeps 29 of every $100 in revenue as profit

Debt/EquityHealth
0.269/10

Conservative balance sheet, low leverage

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

TCBIO1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
-0.542/10

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 : 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 32.2%. Revenue growth of 16.9% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : TCBIO

The primary concerns for TCBIO are Altman Z-Score.

Key Dynamics to Monitor

ACGL profiles as a mature stock while TCBIO is a growth 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 16.9% — 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 54/100), backed by strong 22.1% margins. Both earn "Exceptional Buy" and "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 (TCBIO), headquartered in Dallas, Texas, is a leading regional bank offering a comprehensive suite of financial services that cater to both commercial and individual clients. The firm excels in providing customized solutions including business lending, treasury management, and personal banking, driven by a strong emphasis on client relationships and in-depth local market insights. With a robust approach to risk management and a strategic focus on sustainable growth, TCBIO is strategically positioned to thrive in a competitive environment while delivering long-term value for its shareholders.

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