WallStSmart

Arch Capital Group Ltd. (ACGL)vsToronto Dominion Bank (TD)

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Smart Verdict

WallStSmart Research — data-driven comparison

Toronto Dominion Bank generates 216% more annual revenue ($60.82B vs $19.23B). TD leads profitability with a 26.6% profit margin vs 24.4%. TD appears more attractively valued with a PEG of 1.01. TD earns a higher WallStSmart Score of 78/100 (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

TD

Strong Buy

78

out of 100

Grade: B+

Growth: 8.7Profit: 7.5Value: 5.7Quality: 3.0
Piotroski: 5/9Altman Z: -0.64

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 8.7/10
P/E RatioValuation
8.2x10/10

Attractively priced relative to earnings

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

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

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

TD5 strengths · Avg: 9.0/10
Market CapQuality
$203.31B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
38.0%10/10

Strong operational efficiency at 38.0%

Profit MarginProfitability
26.6%9/10

Keeps 27 of every $100 in revenue as profit

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

EPS GrowthGrowth
45.0%8/10

Earnings expanding 45.0% YoY

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

TD3 concerns · Avg: 1.7/10
Free Cash FlowQuality
$-6.59B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.642/10

Distress zone — elevated risk

Debt/EquityHealth
2.351/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Profit Margin, Debt/Equity. 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 : TD

The strongest argument for TD centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 26.6% and operating margin at 38.0%. Revenue growth of 11.5% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : TD

The primary concerns for TD are Free Cash Flow, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.35 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

TD carries more volatility with a beta of 0.87 — expect wider price swings.

TD is growing revenue faster at 11.5% — sustainability is the question.

ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

TD scores higher overall (78/100 vs 67/100), backed by strong 26.6% margins and 11.5% revenue growth. 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.

Toronto Dominion Bank

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Toronto-Dominion Bank offers a variety of personal and commercial banking products and services in Canada and the United States. The company is headquartered in Toronto, Canada.

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