Arch Capital Group Ltd. (ACGL)vsFirst Merchants Corporation Depository Shares (FRMEP)
ACGL
Arch Capital Group Ltd.
$97.81
-0.91%
FINANCIAL SERVICES · Cap: $33.45B
FRMEP
First Merchants Corporation Depository Shares
$25.47
+0.04%
FINANCIAL SERVICES · Cap: $2.42B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 2895% more annual revenue ($19.23B vs $642.19M). FRMEP leads profitability with a 29.0% profit margin vs 24.4%. FRMEP trades at a lower P/E of 6.6x. ACGL earns a higher WallStSmart Score of 67/100 (B-).
ACGL
Strong Buy67
out of 100
Grade: B-
FRMEP
Hold43
out of 100
Grade: D
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 26.6%
Generating 2.5B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 34.3%
Keeps 29 of every $100 in revenue as profit
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
2.8% revenue growth
ROE of 7.4% — below average capital efficiency
Earnings declined 28.7%
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 24.4% and operating margin at 26.6%. PEG of 1.06 suggests the stock is reasonably priced for its growth.
Bull Case : FRMEP
The strongest argument for FRMEP centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 29.0% and operating margin at 34.3%.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : FRMEP
The primary concerns for FRMEP are Revenue Growth, Return on Equity, EPS Growth.
Key Dynamics to Monitor
ACGL profiles as a declining stock while FRMEP is a value play — different risk/reward profiles.
FRMEP carries more volatility with a beta of 0.85 — expect wider price swings.
FRMEP is growing revenue faster at 2.8% — sustainability is the question.
ACGL generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (67/100 vs 43/100), backed by strong 24.4% margins. Both earn "Strong Buy" and "Hold" 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 Depository Shares
FINANCIAL SERVICES · BANKS - REGIONAL · USA
First Merchants Corporation Depository Shares (FRMEP) represent a robust investment opportunity in the Midwest's financial services landscape, underpinned by a strong regional banking institution. The company delivers a wide array of financial services, encompassing commercial banking, consumer lending, and wealth management, tailored to meet the diverse needs of its clientele. With a proactive approach to community engagement and a commitment to sustainable growth, First Merchants emphasizes enhancing shareholder value while ensuring resilience against market fluctuations. This strategic orientation positions First Merchants as an attractive option for institutional investors aiming for dependable returns in a dynamic economic environment.
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