WallStSmart

Arch Capital Group Ltd (ACGL)vsCadence Bancorp (CADE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 972% more annual revenue ($19.93B vs $1.86B). ACGL leads profitability with a 22.1% profit margin vs 0.3%. ACGL trades at a lower P/E of 8.4x. 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

CADE

Buy

61

out of 100

Grade: C+

Growth: 5.3Profit: 4.0Value: 6.0Quality: 4.0
Piotroski: 2/9

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

CADE2 strengths · Avg: 9.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

P/E RatioValuation
15.2x8/10

Attractively priced relative to earnings

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

CADE4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
0.1%4/10

0.1% revenue growth

EPS GrowthGrowth
0.1%4/10

0.1% earnings growth

Return on EquityProfitability
0.1%3/10

ROE of 0.1% — below average capital efficiency

Profit MarginProfitability
0.3%3/10

0.3% margin — thin

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 : CADE

The strongest argument for CADE centers on Price/Book, P/E Ratio.

Bear Case : ACGL

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

Bear Case : CADE

The primary concerns for CADE are Revenue Growth, EPS Growth, Return on Equity. Thin 0.3% margins leave little buffer for downturns.

Key Dynamics to Monitor

ACGL profiles as a mature stock while CADE is a value play — different risk/reward profiles.

CADE carries more volatility with a beta of 0.95 — 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.

Bottom Line

ACGL scores higher overall (81/100 vs 61/100), backed by strong 22.1% margins. Both earn "Exceptional 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.

Cadence Bancorp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Cadence Bancorporation, a financial portfolio company, through its subsidiary, Cadence Bank, a National Association that provides banking and wealth management services to businesses, high-net-worth individuals, business owners, and retail clients. The company is headquartered in Houston, Texas.

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