Arch Capital Group Ltd. (ACGL)vsWells Fargo & Company (WFC)
ACGL
Arch Capital Group Ltd.
$103.94
+1.40%
FINANCIAL SERVICES · Cap: $34.24B
WFC
Wells Fargo & Company
$84.81
+1.36%
FINANCIAL SERVICES · Cap: $251.75B
Smart Verdict
WallStSmart Research — data-driven comparison
Wells Fargo & Company generates 332% more annual revenue ($83.11B vs $19.23B). WFC leads profitability with a 27.6% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. WFC earns a higher WallStSmart Score of 74/100 (B).
ACGL
Strong Buy67
out of 100
Grade: B-
WFC
Strong Buy74
out of 100
Grade: B
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Strong operational efficiency at 26.6%
Generating 1.3B in free cash flow
Mega-cap, among the largest globally
Attractively priced relative to earnings
Strong operational efficiency at 34.1%
Keeps 28 of every $100 in revenue as profit
Reasonable price relative to book value
Generating 6.8B in free cash flow
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
0.4% revenue growth
Elevated debt levels
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ACGL
The strongest argument for ACGL centers on P/E Ratio, Profit Margin, Debt/Equity. 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 : WFC
The strongest argument for WFC centers on Market Cap, P/E Ratio, Operating Margin. Profitability is solid with margins at 27.6% and operating margin at 34.1%. PEG of 1.39 suggests the stock is reasonably priced for its growth.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : WFC
The primary concerns for WFC are Revenue Growth, Debt/Equity, Altman Z-Score.
Key Dynamics to Monitor
ACGL profiles as a declining stock while WFC is a value play — different risk/reward profiles.
WFC carries more volatility with a beta of 0.95 — expect wider price swings.
WFC is growing revenue faster at 0.4% — sustainability is the question.
WFC generates stronger free cash flow (6.8B), providing more financial flexibility.
Bottom Line
WFC scores higher overall (74/100 vs 67/100), backed by strong 27.6% 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.
Wells Fargo & Company
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Wells Fargo & Company is an American multinational financial services company with corporate headquarters in San Francisco, California, operational headquarters in Manhattan, and managerial offices throughout the United States and overseas.
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