WallStSmart

Arch Capital Group Ltd. (ACGL)vsUnited Community Banks, Inc. (UCB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 1635% more annual revenue ($19.23B vs $1.11B). UCB leads profitability with a 34.1% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. UCB earns a higher WallStSmart Score of 79/100 (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

UCB

Strong Buy

79

out of 100

Grade: B+

Growth: 8.7Profit: 7.5Value: 6.3Quality: 7.5
Piotroski: 6/9Altman Z: 0.41

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

UCB6 strengths · Avg: 9.8/10
P/E RatioValuation
11.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
34.1%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
50.9%10/10

Strong operational efficiency at 50.9%

EPS GrowthGrowth
50.8%10/10

Earnings expanding 50.8% YoY

Debt/EquityHealth
0.109/10

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

UCB2 concerns · Avg: 3.0/10
PEG RatioValuation
1.674/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.412/10

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 : UCB

The strongest argument for UCB centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 34.1% and operating margin at 50.9%. Revenue growth of 24.4% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : UCB

The primary concerns for UCB are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

ACGL profiles as a declining stock while UCB is a growth play — different risk/reward profiles.

UCB carries more volatility with a beta of 0.83 — expect wider price swings.

UCB is growing revenue faster at 24.4% — sustainability is the question.

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

Bottom Line

UCB scores higher overall (79/100 vs 67/100), backed by strong 34.1% margins and 24.4% 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.

United Community Banks, Inc.

FINANCIAL SERVICES · BANKS - REGIONAL · USA

United Community Banks, Inc. (UCB), headquartered in Blairsville, Georgia, operates as a leading regional bank providing a comprehensive suite of financial services, including commercial and retail banking, mortgage lending, and wealth management, with a strong presence in the Southeastern U.S. The bank's strategic emphasis on community engagement and prudent growth through targeted acquisitions positions it well for sustained profitability and expansion. UCB maintains robust risk management protocols and a steadfast commitment to customer service, reinforcing its reputation as a trusted financial partner for both individuals and businesses. With a focus on innovation aligned with core values, UCB is poised to navigate the evolving financial landscape effectively.

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