Arch Capital Group Ltd (ACGL)vsFirst Merchants Corporation (FRME)
ACGL
Arch Capital Group Ltd
$94.46
+1.88%
FINANCIAL SERVICES · Cap: $34.58B
FRME
First Merchants Corporation
$40.44
+1.56%
FINANCIAL SERVICES · Cap: $2.53B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd generates 3025% more annual revenue ($19.93B vs $637.81M). FRME leads profitability with a 31.2% profit margin vs 22.1%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 81/100 (A-).
ACGL
Exceptional Buy81
out of 100
Grade: A-
FRME
Buy62
out of 100
Grade: C+
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
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 31 of every $100 in revenue as profit
Strong operational efficiency at 22.6%
Areas to Watch
No major concerns identified
ROE of 8.0% — below average capital efficiency
Revenue declined 2.5%
Earnings declined 52.1%
Distress zone — elevated risk
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 : FRME
The strongest argument for FRME centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 31.2% and operating margin at 22.6%. PEG of 1.40 suggests the stock is reasonably priced for its growth.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : FRME
The primary concerns for FRME are Return on Equity, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
ACGL profiles as a mature stock while FRME is a declining play — different risk/reward profiles.
FRME carries more volatility with a beta of 0.88 — expect wider price swings.
ACGL is growing revenue faster at 8.5% — 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 62/100), backed by strong 22.1% margins. Both earn "Exceptional 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.
First Merchants Corporation
FINANCIAL SERVICES · BANKS - REGIONAL · USA
First Merchants Corporation is the financial holding company for First Merchants Bank providing community banking services. The company is headquartered in Muncie, Indiana.
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