WallStSmart

Arch Capital Group Ltd (ACGL)vsWestern Alliance Bancorporation (WAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 490% more annual revenue ($19.93B vs $3.38B). WAL leads profitability with a 28.2% profit margin vs 22.1%. ACGL appears more attractively valued with a PEG of 1.06. 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

WAL

Strong Buy

67

out of 100

Grade: B-

Growth: 6.0Profit: 7.5Value: 7.0Quality: 4.5
Piotroski: 4/9

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

WAL4 strengths · Avg: 9.8/10
P/E RatioValuation
9.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Operating MarginProfitability
31.8%10/10

Strong operational efficiency at 31.8%

Profit MarginProfitability
28.2%9/10

Keeps 28 of every $100 in revenue as profit

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

WAL2 concerns · Avg: 2.0/10
EPS GrowthGrowth
-7.8%2/10

Earnings declined 7.8%

Free Cash FlowQuality
$-118.20M2/10

Negative free cash flow — burning cash

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 : WAL

The strongest argument for WAL centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 28.2% and operating margin at 31.8%. PEG of 1.47 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

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

Bear Case : WAL

The primary concerns for WAL are EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

WAL carries more volatility with a beta of 1.37 — expect wider price swings.

ACGL is growing revenue faster at 8.5% — sustainability is the question.

ACGL generates stronger free cash flow (1.4B), providing more financial flexibility.

Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ACGL scores higher overall (81/100 vs 67/100), backed by strong 22.1% margins. Both earn "Exceptional 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.

Western Alliance Bancorporation

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Western Alliance Bancorporation is the banking holding company for Western Alliance Bank offering various banking products and related services primarily in Arizona, California and Nevada. The company is headquartered in Phoenix, Arizona.

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