Arch Capital Group Ltd. (ACGL)vsFirst Merchants Corporation (FRME)
ACGL
Arch Capital Group Ltd.
$101.14
-3.26%
FINANCIAL SERVICES · Cap: $35.41B
FRME
First Merchants Corporation
$43.26
-0.37%
FINANCIAL SERVICES · Cap: $2.81B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 3001% more annual revenue ($19.78B vs $637.81M). FRME leads profitability with a 31.2% profit margin vs 24.6%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 79/100 (B+).
ACGL
Strong Buy79
out of 100
Grade: B+
FRME
Buy57
out of 100
Grade: C
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Earnings expanding 94.6% YoY
Every $100 of equity generates 20 in profit
Keeps 25 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Reasonable price relative to book value
Keeps 31 of every $100 in revenue as profit
Attractively priced relative to earnings
Strong operational efficiency at 22.6%
Areas to Watch
Revenue declined 3.3%
Distress zone — elevated risk
ROE of 7.4% — 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, EPS Growth, Return on Equity. 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 : FRME
The strongest argument for FRME centers on Price/Book, Profit Margin, P/E Ratio. 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
The primary concerns for ACGL are Revenue Growth, Altman Z-Score.
Bear Case : FRME
The primary concerns for FRME are Return on Equity, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
FRME carries more volatility with a beta of 0.85 — expect wider price swings.
FRME is growing revenue faster at -2.5% — sustainability is the question.
ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.
Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ACGL scores higher overall (79/100 vs 57/100), 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.
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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