Arch Capital Group Ltd (ACGL)vsFirst American Corporation (FAF)

ACGL

Arch Capital Group Ltd

NASDAQ

$94.46

+1.88%

FINANCIAL SERVICES · Cap: $34.58B

FAF

First American Corporation

NYSE

$70.13

-1.39%

FINANCIAL SERVICES · Cap: $7.18B

⚡

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 159% more annual revenue ($19.93B vs $7.71B). ACGL leads profitability with a 22.1% profit margin vs 8.7%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

out of 100

Grade: A-

Growth: 8.7Profit: 8.0Value: 7.0Quality: 6.5

Piotroski: 5/9

FAF

Strong Buy

out of 100

Grade: B-

Growth: 6.7Profit: 6.0Value: 5.7Quality: 7.3

Piotroski: 6/9Altman Z: 1.51

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

FAF4 strengths · Avg: 9.5/10

P/E RatioValuation

10.8x10/10

Attractively priced relative to earnings

Price/BookValuation

1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth

70.4%10/10

Earnings expanding 70.4% YoY

Revenue GrowthGrowth

16.2%8/10

16.2% revenue growth

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

FAF3 concerns · Avg: 2.7/10

Altman Z-ScoreHealth

1.514/10

Distress zone — elevated risk

PEG RatioValuation

2.982/10

Expensive relative to growth rate

Free Cash FlowQuality

$-32.70M2/10

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 22.1% and operating margin at 29.5%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : FAF

The strongest argument for FAF centers on P/E Ratio, Price/Book, EPS Growth. Revenue growth of 16.2% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : FAF

The primary concerns for FAF are Altman Z-Score, PEG Ratio, Free Cash Flow.

Key Dynamics to Monitor

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

FAF carries more volatility with a beta of 1.30 — expect wider price swings.

FAF is growing revenue faster at 16.2% — 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 68/100), 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.

First American Corporation

FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA

First American Financial Corporation, provides financial services. The company is headquartered in Santa Ana, California.

Compare with Other INSURANCE - DIVERSIFIED Stocks

ACGL vs BRK-B ACGL vs BRK-A ACGL vs AIG ACGL vs SLF ACGL vs HIG FAF vs BRK-B FAF vs BRK-A FAF vs AIG FAF vs SLF FAF vs HIG

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