Arch Capital Group Ltd. (ACGL)vsFirst Merchants Corporation (FRME)
ACGL
Arch Capital Group Ltd.
$103.94
+2.15%
FINANCIAL SERVICES · Cap: $34.24B
FRME
First Merchants Corporation
$40.66
-0.66%
FINANCIAL SERVICES · Cap: $2.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 2744% more annual revenue ($19.23B vs $676.12M). FRME leads profitability with a 29.2% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. FRME earns a higher WallStSmart Score of 78/100 (B+).
ACGL
Strong Buy67
out of 100
Grade: B-
FRME
Strong Buy78
out of 100
Grade: B+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Strong operational efficiency at 26.6%
Generating 1.3B in free cash flow
Reasonable price relative to book value
Strong operational efficiency at 45.0%
Keeps 29 of every $100 in revenue as profit
Attractively priced relative to earnings
Revenue surging 21.0% year-over-year
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
ROE of 7.4% — below average capital efficiency
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ACGL
The strongest argument for ACGL centers on P/E Ratio, Profit Margin, Debt/Equity. 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 : FRME
The strongest argument for FRME centers on Price/Book, Operating Margin, Profit Margin. Profitability is solid with margins at 29.2% and operating margin at 45.0%. Revenue growth of 21.0% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : FRME
The primary concerns for FRME are Return on Equity, Altman Z-Score.
Key Dynamics to Monitor
ACGL profiles as a declining stock while FRME is a growth play — different risk/reward profiles.
FRME carries more volatility with a beta of 0.88 — expect wider price swings.
FRME is growing revenue faster at 21.0% — sustainability is the question.
ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
FRME scores higher overall (78/100 vs 67/100), backed by strong 29.2% margins and 21.0% 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.
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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