WallStSmart

Arch Capital Group Ltd (ACGL)vsFarmers & Merchants Bancorp Inc (FMAO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 15973% more annual revenue ($19.93B vs $123.99M). FMAO leads profitability with a 29.0% profit margin vs 22.1%. ACGL trades at a lower P/E of 8.4x. ACGL earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

81

out of 100

Grade: A-

Growth: 8.7Profit: 8.0Value: 7.0Quality: 6.5
Piotroski: 5/9

FMAO

Strong Buy

67

out of 100

Grade: B-

Growth: 8.7Profit: 7.5Value: 6.7Quality: 5.0

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

FMAO6 strengths · Avg: 9.2/10
P/E RatioValuation
10.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Operating MarginProfitability
42.2%10/10

Strong operational efficiency at 42.2%

Profit MarginProfitability
29.0%9/10

Keeps 29 of every $100 in revenue as profit

Revenue GrowthGrowth
16.5%8/10

16.5% revenue growth

EPS GrowthGrowth
37.3%8/10

Earnings expanding 37.3% YoY

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

FMAO1 concerns · Avg: 3.0/10
Market CapQuality
$366.80M3/10

Smaller company, higher risk/reward

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 : FMAO

The strongest argument for FMAO centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 29.0% and operating margin at 42.2%. Revenue growth of 16.5% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : FMAO

The primary concerns for FMAO are Market Cap.

Key Dynamics to Monitor

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

FMAO carries more volatility with a beta of 0.82 — expect wider price swings.

FMAO is growing revenue faster at 16.5% — 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 67/100), 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.

Farmers & Merchants Bancorp Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Farmers & Merchants Bancorp, Inc. is the banking holding company for The Farmers & Merchants State Bank providing commercial banking services to individuals and small businesses in Northwest Ohio and Northeast Indiana. The company is headquartered in Archbold, Ohio.

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