Arch Capital Group Ltd. (ACGL)vsWebster Financial Corporation (WBS)
ACGL
Arch Capital Group Ltd.
$97.95
+1.94%
FINANCIAL SERVICES · Cap: $33.47B
WBS
Webster Financial Corporation
$77.57
0.00%
FINANCIAL SERVICES · Cap: $12.57B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 594% more annual revenue ($19.23B vs $2.77B). WBS leads profitability with a 36.8% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 67/100 (B-).
ACGL
Strong Buy67
out of 100
Grade: B-
WBS
Strong Buy66
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
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
Reasonable price relative to book value
Keeps 37 of every $100 in revenue as profit
Strong operational efficiency at 50.6%
Attractively priced relative to earnings
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Expensive relative to growth rate
2.8% earnings growth
Negative free cash flow — burning cash
Distress zone — elevated risk
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 : WBS
The strongest argument for WBS centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 36.8% and operating margin at 50.6%.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : WBS
The primary concerns for WBS are PEG Ratio, EPS Growth, Free Cash Flow.
Key Dynamics to Monitor
ACGL profiles as a declining stock while WBS is a mature play — different risk/reward profiles.
WBS carries more volatility with a beta of 1.00 — expect wider price swings.
WBS is growing revenue faster at 5.8% — 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 66/100), backed by strong 24.4% margins. 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.
Webster Financial Corporation
FINANCIAL SERVICES · BANKS - REGIONAL · USA
Webster Financial Corporation is the banking holding company for Webster Bank, a National Association that provides a variety of banking, investment, and financial services to individuals, families, and businesses in the United States. The company is headquartered in Waterbury, Connecticut.
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