WallStSmart

Arch Capital Group Ltd. (ACGL)vsFS Bancorp Inc (FSBW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 13169% more annual revenue ($19.23B vs $144.94M). ACGL leads profitability with a 24.4% profit margin vs 23.0%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 67/100 (B-).

ACGL

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 8.0Value: 7.0Quality: 6.8
Piotroski: 6/9Altman Z: 1.48

FSBW

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 7.0Value: 7.0Quality: 6.0
Piotroski: 5/9Altman Z: -0.61

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
7.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

Free Cash FlowQuality
$2.49B8/10

Generating 2.5B in free cash flow

FSBW4 strengths · Avg: 9.8/10
P/E RatioValuation
9.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Operating MarginProfitability
32.4%10/10

Strong operational efficiency at 32.4%

Profit MarginProfitability
23.0%9/10

Keeps 23 of every $100 in revenue as profit

Areas to Watch

ACGL3 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-10.5%2/10

Revenue declined 10.5%

EPS GrowthGrowth
-7.1%2/10

Earnings declined 7.1%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

FSBW3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.5%4/10

2.5% revenue growth

Market CapQuality
$319.27M3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
-0.612/10

Distress zone — elevated risk

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 24.4% and operating margin at 26.6%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : FSBW

The strongest argument for FSBW centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 23.0% and operating margin at 32.4%. PEG of 1.35 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.

Bear Case : FSBW

The primary concerns for FSBW are Revenue Growth, Market Cap, Altman Z-Score.

Key Dynamics to Monitor

ACGL profiles as a declining stock while FSBW is a value play — different risk/reward profiles.

FSBW carries more volatility with a beta of 0.66 — expect wider price swings.

FSBW is growing revenue faster at 2.5% — 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 66/100), backed by strong 24.4% margins. 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.

FS Bancorp Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

FS Bancorp, Inc. is a bank holding company for 1st Security Bank of Washington providing banking and financial services to local families, local and regional businesses, and industry niches. The company is headquartered in Mountlake Terrace, Washington.

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