WallStSmart

Arch Capital Group Ltd. (ACGL)vsHanmi Financial Corporation (HAFC)

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Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 6820% more annual revenue ($19.23B vs $277.92M). HAFC leads profitability with a 32.2% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. HAFC earns a higher WallStSmart Score of 80/100 (B+).

ACGL

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

HAFC

Strong Buy

80

out of 100

Grade: B+

Growth: 8.7Profit: 7.5Value: 7.0Quality: 5.5
Piotroski: 6/9Altman Z: -0.64

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
7.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.5x10/10

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
$1.31B8/10

Generating 1.3B in free cash flow

HAFC6 strengths · Avg: 9.8/10
P/E RatioValuation
10.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
32.2%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
45.0%10/10

Strong operational efficiency at 45.0%

EPS GrowthGrowth
58.0%10/10

Earnings expanding 58.0% YoY

Debt/EquityHealth
0.169/10

Conservative balance sheet, low leverage

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

HAFC3 concerns · Avg: 2.3/10
Market CapQuality
$912.60M3/10

Smaller company, higher risk/reward

Free Cash FlowQuality
$-9.92M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.642/10

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 : HAFC

The strongest argument for HAFC centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 32.2% and operating margin at 45.0%. Revenue growth of 23.3% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : HAFC

The primary concerns for HAFC are Market Cap, Free Cash Flow, Altman Z-Score.

Key Dynamics to Monitor

ACGL profiles as a declining stock while HAFC is a growth play — different risk/reward profiles.

HAFC carries more volatility with a beta of 0.74 — expect wider price swings.

HAFC is growing revenue faster at 23.3% — sustainability is the question.

ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

HAFC scores higher overall (80/100 vs 67/100), backed by strong 32.2% margins and 23.3% 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.

Hanmi Financial Corporation

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Hanmi Financial Corporation is the holding company of Hanmi Bank offering commercial banking products and services in the United States. The company is headquartered in Los Angeles, California.

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