Arch Capital Group Ltd (ACGL)vsCapital One Financial Corporation (COF)
ACGL
Arch Capital Group Ltd
$93.32
-0.30%
FINANCIAL SERVICES · Cap: $33.94B
COF
Capital One Financial Corporation
$185.23
+0.32%
FINANCIAL SERVICES · Cap: $112.86B
Smart Verdict
WallStSmart Research — data-driven comparison
Capital One Financial Corporation generates 64% more annual revenue ($32.78B vs $19.93B). ACGL leads profitability with a 22.1% profit margin vs 7.5%. COF appears more attractively valued with a PEG of 0.19. ACGL earns a higher WallStSmart Score of 81/100 (A-).
ACGL
Exceptional Buy81
out of 100
Grade: A-
COF
Strong Buy75
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+81.8%
Fair Value
$542.88
Current Price
$93.32
$449.56 discount
Margin of Safety
-50.8%
Fair Value
$142.20
Current Price
$185.23
$43.03 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 22 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 29.5%
Earnings expanding 38.8% YoY
Growing faster than its price suggests
Reasonable price relative to book value
Revenue surging 51.6% year-over-year
Large-cap with strong market position
Strong operational efficiency at 22.9%
Earnings expanding 22.2% YoY
Areas to Watch
No major concerns identified
ROE of 2.4% — below average capital efficiency
7.5% margin — thin
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull 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 : COF
The strongest argument for COF centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 51.6% demonstrates continued momentum. PEG of 0.19 suggests the stock is reasonably priced for its growth.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : COF
The primary concerns for COF are Return on Equity, Profit Margin, P/E Ratio. A P/E of 54.0x leaves little room for execution misses.
Key Dynamics to Monitor
ACGL profiles as a mature stock while COF is a hypergrowth play — different risk/reward profiles.
COF carries more volatility with a beta of 1.14 — expect wider price swings.
COF is growing revenue faster at 51.6% — sustainability is the question.
COF generates stronger free cash flow (6.7B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (81/100 vs 75/100), 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 One Financial Corporation
FINANCIAL SERVICES · CREDIT SERVICES · USA
Capital One Financial Corporation is an American bank holding company specializing in credit cards, auto loans, banking, and savings accounts, headquartered in McLean, Virginia with operations primarily in the United States.
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