WallStSmart

Arch Capital Group Ltd (ACGL)vsCapitol Federal Financial Inc (CFFN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 9402% more annual revenue ($19.93B vs $209.74M). CFFN leads profitability with a 34.8% profit margin vs 22.1%. ACGL appears more attractively valued with a PEG of 1.06. 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

CFFN

Strong Buy

72

out of 100

Grade: B

Growth: 8.7Profit: 7.0Value: 5.0Quality: 6.0
Piotroski: 7/9Altman Z: 0.35

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

CFFN6 strengths · Avg: 9.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
34.8%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
47.3%10/10

Strong operational efficiency at 47.3%

P/E RatioValuation
13.7x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
20.4%8/10

Revenue surging 20.4% year-over-year

EPS GrowthGrowth
32.6%8/10

Earnings expanding 32.6% YoY

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

CFFN4 concerns · Avg: 2.8/10
Market CapQuality
$978.57M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.0%3/10

ROE of 7.0% — below average capital efficiency

Debt/EquityHealth
1.763/10

Elevated debt levels

PEG RatioValuation
4.092/10

Expensive relative to growth rate

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 : CFFN

The strongest argument for CFFN centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 34.8% and operating margin at 47.3%. Revenue growth of 20.4% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : CFFN

The primary concerns for CFFN are Market Cap, Return on Equity, Debt/Equity. Debt-to-equity of 1.76 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

CFFN carries more volatility with a beta of 0.65 — expect wider price swings.

CFFN is growing revenue faster at 20.4% — 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 72/100), 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.

Capitol Federal Financial Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Capitol Federal Financial, Inc. is the holding company for Capitol Federal Savings Bank offering various retail banking products and services in the United States. The company is headquartered in Topeka, Kansas.

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