WallStSmart

Arch Capital Group Ltd (ACGL)vsCullen/Frost Bankers Inc (CFR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 810% more annual revenue ($19.93B vs $2.19B). CFR leads profitability with a 29.6% 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

CFR

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 8.0Value: 5.7Quality: 4.8
Piotroski: 3/9

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

CFR4 strengths · Avg: 8.8/10
Operating MarginProfitability
34.5%10/10

Strong operational efficiency at 34.5%

Profit MarginProfitability
29.6%9/10

Keeps 30 of every $100 in revenue as profit

P/E RatioValuation
14.4x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

CFR2 concerns · Avg: 3.5/10
PEG RatioValuation
2.364/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : CFR

The strongest argument for CFR centers on Operating Margin, Profit Margin, P/E Ratio. Profitability is solid with margins at 29.6% and operating margin at 34.5%.

Bear Case : ACGL

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

Bear Case : CFR

The primary concerns for CFR are PEG Ratio, Piotroski F-Score.

Key Dynamics to Monitor

CFR carries more volatility with a beta of 0.61 — expect wider price swings.

CFR is growing revenue faster at 9.5% — sustainability is the question.

ACGL generates stronger free cash flow (1.4B), providing more financial flexibility.

Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ACGL scores higher overall (81/100 vs 64/100), 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.

Cullen/Frost Bankers Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Cullen / Frost Bankers, Inc. is the banking holding company for Frost Bank offering commercial and consumer banking services in Texas. The company is headquartered in San Antonio, Texas.

Want to dig deeper into these stocks?