WallStSmart

Arch Capital Group Ltd (ACGL)vsCapital Bancorp (CBNK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 8564% more annual revenue ($19.93B vs $230.03M). CBNK leads profitability with a 24.8% profit margin vs 22.1%. 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

CBNK

Strong Buy

69

out of 100

Grade: B-

Growth: 8.7Profit: 7.5Value: 6.7Quality: 5.0

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

CBNK6 strengths · Avg: 9.5/10
P/E RatioValuation
9.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Operating MarginProfitability
33.5%10/10

Strong operational efficiency at 33.5%

EPS GrowthGrowth
102.5%10/10

Earnings expanding 102.5% YoY

Profit MarginProfitability
24.8%9/10

Keeps 25 of every $100 in revenue as profit

Revenue GrowthGrowth
15.5%8/10

15.5% revenue growth

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

CBNK1 concerns · Avg: 3.0/10
Market CapQuality
$511.62M3/10

Smaller company, higher risk/reward

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 : CBNK

The strongest argument for CBNK centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 24.8% and operating margin at 33.5%. Revenue growth of 15.5% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : CBNK

The primary concerns for CBNK are Market Cap.

Key Dynamics to Monitor

ACGL profiles as a mature stock while CBNK is a growth play — different risk/reward profiles.

CBNK carries more volatility with a beta of 0.59 — expect wider price swings.

CBNK is growing revenue faster at 15.5% — 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 69/100), 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.

Capital Bancorp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Capital Bancorp, Inc. is the banking holding company for Capital Bank, NA that offers various banking products and services to businesses, nonprofits and entrepreneurs in the United States. The company is headquartered in Rockville, Maryland.

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