WallStSmart

Arch Capital Group Ltd. (ACGL)vsCanadian Imperial Bank Of Commerce (CM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian Imperial Bank Of Commerce generates 56% more annual revenue ($30.01B vs $19.23B). CM leads profitability with a 33.7% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. CM earns a higher WallStSmart Score of 73/100 (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

CM

Strong Buy

73

out of 100

Grade: B

Growth: 8.0Profit: 8.0Value: 5.7Quality: 3.0
Piotroski: 5/9Altman Z: -0.62

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

CM6 strengths · Avg: 8.8/10
Profit MarginProfitability
33.7%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
40.0%10/10

Strong operational efficiency at 40.0%

Market CapQuality
$106.68B9/10

Large-cap with strong market position

P/E RatioValuation
15.6x8/10

Attractively priced relative to earnings

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.6%8/10

16.6% revenue growth

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

CM3 concerns · Avg: 2.3/10
PEG RatioValuation
1.864/10

Expensive relative to growth rate

Altman Z-ScoreHealth
-0.622/10

Distress zone — elevated risk

Debt/EquityHealth
2.391/10

Elevated debt levels

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 : CM

The strongest argument for CM centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 33.7% and operating margin at 40.0%. Revenue growth of 16.6% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : CM

The primary concerns for CM are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.39 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

CM carries more volatility with a beta of 1.25 — expect wider price swings.

CM is growing revenue faster at 16.6% — sustainability is the question.

CM generates stronger free cash flow (2.1B), providing more financial flexibility.

Bottom Line

CM scores higher overall (73/100 vs 67/100), backed by strong 33.7% margins and 16.6% 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.

Canadian Imperial Bank Of Commerce

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Canadian Imperial Bank of Commerce, a diversified financial institution, offers a variety of financial products and services to personal, commercial, public sector, and institutional clients in Canada, the United States, and internationally. The company is headquartered in Toronto, Canada.

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