WallStSmart

Arch Capital Group Ltd. (ACGL)vsFifth Third Bancorp (FITB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 91% more annual revenue ($19.23B vs $10.10B). ACGL leads profitability with a 24.4% profit margin vs 23.2%. ACGL appears more attractively valued with a PEG of 1.06. FITB earns a higher WallStSmart Score of 68/100 (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

FITB

Strong Buy

68

out of 100

Grade: B-

Growth: 6.7Profit: 6.5Value: 5.0Quality: 4.5
Piotroski: 6/9Altman Z: 0.17

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

FITB5 strengths · Avg: 9.0/10
Operating MarginProfitability
39.1%10/10

Strong operational efficiency at 39.1%

Revenue GrowthGrowth
51.8%10/10

Revenue surging 51.8% year-over-year

Profit MarginProfitability
23.2%9/10

Keeps 23 of every $100 in revenue as profit

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$2.62B8/10

Generating 2.6B in free cash flow

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

FITB4 concerns · Avg: 2.8/10
PEG RatioValuation
1.744/10

Expensive relative to growth rate

Return on EquityProfitability
6.8%3/10

ROE of 6.8% — below average capital efficiency

EPS GrowthGrowth
-5.7%2/10

Earnings declined 5.7%

Altman Z-ScoreHealth
0.172/10

Distress zone — elevated risk

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 : FITB

The strongest argument for FITB centers on Operating Margin, Revenue Growth, Profit Margin. Profitability is solid with margins at 23.2% and operating margin at 39.1%. Revenue growth of 51.8% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : FITB

The primary concerns for FITB are PEG Ratio, Return on Equity, EPS Growth.

Key Dynamics to Monitor

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

FITB carries more volatility with a beta of 0.91 — expect wider price swings.

FITB is growing revenue faster at 51.8% — sustainability is the question.

FITB generates stronger free cash flow (2.6B), providing more financial flexibility.

Bottom Line

FITB scores higher overall (68/100 vs 67/100), backed by strong 23.2% margins and 51.8% 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.

Fifth Third Bancorp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Fifth Third Bank is a bank headquartered in Cincinnati, Ohio, at Fifth Third Center. It is the principal subsidiary of Fifth Third Bancorp, a diversified bank holding company.

Want to dig deeper into these stocks?