Arch Capital Group Ltd. (ACGL)vsTowne Bank (TOWN)
ACGL
Arch Capital Group Ltd.
$98.48
-0.82%
FINANCIAL SERVICES · Cap: $34.28B
TOWN
Towne Bank
$37.46
-0.72%
FINANCIAL SERVICES · Cap: $3.46B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 1621% more annual revenue ($19.23B vs $1.12B). TOWN leads profitability with a 28.6% profit margin vs 24.4%. ACGL trades at a lower P/E of 7.9x. TOWN earns a higher WallStSmart Score of 74/100 (B).
ACGL
Strong Buy67
out of 100
Grade: B-
TOWN
Strong Buy74
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
Every $100 of equity generates 20 in profit
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 26.6%
Reasonable price relative to book value
Strong operational efficiency at 61.0%
Revenue surging 120.7% year-over-year
Earnings expanding 306.1% YoY
Keeps 29 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
ROE of 5.4% — below average capital efficiency
Weak financial health signals
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ACGL
The strongest argument for ACGL centers on P/E Ratio, Price/Book, Return on 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 : TOWN
The strongest argument for TOWN centers on Price/Book, Operating Margin, Revenue Growth. Profitability is solid with margins at 28.6% and operating margin at 61.0%. Revenue growth of 120.7% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : TOWN
The primary concerns for TOWN are Return on Equity, Piotroski F-Score, Altman Z-Score.
Key Dynamics to Monitor
ACGL profiles as a declining stock while TOWN is a growth play — different risk/reward profiles.
TOWN carries more volatility with a beta of 0.70 — expect wider price swings.
TOWN is growing revenue faster at 120.7% — sustainability is the question.
ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.
Bottom Line
TOWN scores higher overall (74/100 vs 67/100), backed by strong 28.6% margins and 120.7% 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.
Towne Bank
FINANCIAL SERVICES · BANKS - REGIONAL · USA
TowneBank offers retail and business banking services for individuals, professionals, and business companies. The company is headquartered in Portsmouth, Virginia.
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