WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 452% more annual revenue ($19.23B vs $3.49B). WAL leads profitability with a 28.2% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. WAL earns a higher WallStSmart Score of 75/100 (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

WAL

Strong Buy

75

out of 100

Grade: B+

Growth: 7.3Profit: 7.5Value: 7.0Quality: 4.0
Piotroski: 4/9Altman Z: -0.63

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
7.7x10/10

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

WAL4 strengths · Avg: 9.8/10
P/E RatioValuation
9.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Operating MarginProfitability
39.4%10/10

Strong operational efficiency at 39.4%

Profit MarginProfitability
28.2%9/10

Keeps 28 of every $100 in revenue as profit

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

WAL2 concerns · Avg: 2.0/10
Free Cash FlowQuality
$-375.40M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.632/10

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 : 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 39.4%. Revenue growth of 13.6% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : WAL

The primary concerns for WAL are Free Cash Flow, Altman Z-Score.

Key Dynamics to Monitor

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

WAL carries more volatility with a beta of 1.32 — expect wider price swings.

WAL is growing revenue faster at 13.6% — sustainability is the question.

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

Bottom Line

WAL scores higher overall (75/100 vs 67/100), backed by strong 28.2% margins and 13.6% 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.

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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