Arch Capital Group Ltd. (ACGL)vsVersaBank (VBNK)
ACGL
Arch Capital Group Ltd.
$93.60
-0.70%
FINANCIAL SERVICES · Cap: $33.06B
VBNK
VersaBank
$22.11
-0.50%
FINANCIAL SERVICES · Cap: $738.83M
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 13029% more annual revenue ($19.23B vs $146.49M). ACGL leads profitability with a 24.4% profit margin vs 23.1%. ACGL trades at a lower P/E of 7.6x. ACGL earns a higher WallStSmart Score of 67/100 (B-).
ACGL
Strong Buy67
out of 100
Grade: B-
VBNK
Buy64
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 26.6%
Generating 1.3B in free cash flow
Strong operational efficiency at 35.5%
Earnings expanding 55.0% YoY
Keeps 23 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Revenue surging 28.4% year-over-year
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 6.0% — below average capital efficiency
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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 : VBNK
The strongest argument for VBNK centers on Operating Margin, EPS Growth, Profit Margin. Profitability is solid with margins at 23.1% and operating margin at 35.5%. Revenue growth of 28.4% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : VBNK
The primary concerns for VBNK are P/E Ratio, Market Cap, Return on Equity.
Key Dynamics to Monitor
ACGL profiles as a declining stock while VBNK is a growth play — different risk/reward profiles.
VBNK carries more volatility with a beta of 1.08 — expect wider price swings.
VBNK is growing revenue faster at 28.4% — 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 64/100), backed by strong 24.4% margins. Both earn "Strong 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.
VersaBank
FINANCIAL SERVICES · BANKS - REGIONAL · USA
VersaBank (VBNK) is a pioneering digital bank headquartered in London, Ontario, distinguished for its innovative technology-driven banking solutions. By leveraging a cutting-edge cloud-based infrastructure, VersaBank enhances operational efficiency while ensuring robust cybersecurity measures, crucial in today's increasingly digital financial landscape. Focusing on both commercial and residential lending, the bank is well-positioned to adapt to evolving consumer demands and capitalize on the ongoing digital transformation in the financial sector. As a leader in Canadian digital banking, VersaBank is strategically equipped to navigate complex markets and unlock new growth opportunities.
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