WallStSmart

Arch Capital Group Ltd. (ACGL)vsCboe Global Markets Inc (CBOE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 280% more annual revenue ($19.23B vs $5.06B). CBOE leads profitability with a 26.7% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. CBOE earns a higher WallStSmart Score of 74/100 (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

CBOE

Strong Buy

74

out of 100

Grade: B

Growth: 8.0Profit: 9.0Value: 4.3Quality: 7.5
Piotroski: 4/9Altman Z: 2.62

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

CBOE6 strengths · Avg: 9.2/10
Operating MarginProfitability
34.6%10/10

Strong operational efficiency at 34.6%

EPS GrowthGrowth
50.2%10/10

Earnings expanding 50.2% YoY

Return on EquityProfitability
24.1%9/10

Every $100 of equity generates 24 in profit

Profit MarginProfitability
26.7%9/10

Keeps 27 of every $100 in revenue as profit

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
22.9%8/10

Revenue surging 22.9% year-over-year

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

CBOE2 concerns · Avg: 2.0/10
PEG RatioValuation
2.642/10

Expensive relative to growth rate

Free Cash FlowQuality
$-536.30M2/10

Negative free cash flow — burning cash

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 : CBOE

The strongest argument for CBOE centers on Operating Margin, EPS Growth, Return on Equity. Profitability is solid with margins at 26.7% and operating margin at 34.6%. Revenue growth of 22.9% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : CBOE

The primary concerns for CBOE are PEG Ratio, Free Cash Flow.

Key Dynamics to Monitor

ACGL profiles as a declining stock while CBOE is a growth play — different risk/reward profiles.

CBOE carries more volatility with a beta of 0.41 — expect wider price swings.

CBOE is growing revenue faster at 22.9% — sustainability is the question.

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

Bottom Line

CBOE scores higher overall (74/100 vs 67/100), backed by strong 26.7% margins and 22.9% 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.

Cboe Global Markets Inc

FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA

Cboe Global Markets is an American company that owns the Chicago Board Options Exchange and the stock exchange operator BATS Global Markets.

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