WallStSmart

Arch Capital Group Ltd. (ACGL)vsFlagstar Financial, Inc. (FLG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 906% more annual revenue ($19.78B vs $1.97B). ACGL leads profitability with a 24.6% profit margin vs -2.9%. FLG appears more attractively valued with a PEG of 0.47. ACGL earns a higher WallStSmart Score of 79/100 (B+).

ACGL

Strong Buy

79

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

FLG

Buy

59

out of 100

Grade: C

Growth: 7.3Profit: 3.5Value: 6.7Quality: 5.0
Piotroski: 4/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

Profit MarginProfitability
24.6%9/10

Keeps 25 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

FLG3 strengths · Avg: 9.3/10
PEG RatioValuation
0.4710/10

Growing faster than its price suggests

Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
21.2%8/10

Revenue surging 21.2% year-over-year

Areas to Watch

ACGL2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

FLG4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Debt/EquityHealth
1.383/10

Elevated debt levels

Return on EquityProfitability
-0.7%2/10

ROE of -0.7% — below average capital efficiency

Free Cash FlowQuality
$-153.00M2/10

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, EPS Growth. Profitability is solid with margins at 24.6% and operating margin at 25.3%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : FLG

The strongest argument for FLG centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 21.2% demonstrates continued momentum. PEG of 0.47 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

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

Bear Case : FLG

The primary concerns for FLG are EPS Growth, Debt/Equity, Return on Equity.

Key Dynamics to Monitor

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

FLG carries more volatility with a beta of 1.03 — expect wider price swings.

FLG is growing revenue faster at 21.2% — sustainability is the question.

ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (79/100 vs 59/100), backed by strong 24.6% margins. Both earn "Strong 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.

Flagstar Financial, Inc.

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Flagstar Financial, Inc. is the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company is headquartered in Hicksville, New York.

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