Arch Capital Group Ltd. (ACGL)vsHeritage Financial Corporation (HFWA)
ACGL
Arch Capital Group Ltd.
$98.25
-0.24%
FINANCIAL SERVICES · Cap: $34.28B
HFWA
Heritage Financial Corporation
$29.41
-0.31%
FINANCIAL SERVICES · Cap: $1.21B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 6418% more annual revenue ($19.23B vs $295.08M). HFWA leads profitability with a 26.4% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. HFWA earns a higher WallStSmart Score of 67/100 (B-).
ACGL
Strong Buy67
out of 100
Grade: B-
HFWA
Strong Buy67
out of 100
Grade: B-
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
Reasonable price relative to book value
Revenue surging 53.1% year-over-year
Keeps 26 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Strong operational efficiency at 28.9%
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of 6.5% — 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, 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 : HFWA
The strongest argument for HFWA centers on Price/Book, Revenue Growth, Profit Margin. Profitability is solid with margins at 26.4% and operating margin at 28.9%. Revenue growth of 53.1% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : HFWA
The primary concerns for HFWA are PEG Ratio, Market Cap, Return on Equity.
Key Dynamics to Monitor
ACGL profiles as a declining stock while HFWA is a growth play — different risk/reward profiles.
HFWA carries more volatility with a beta of 0.49 — expect wider price swings.
HFWA is growing revenue faster at 53.1% — 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 67/100), 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.
Heritage Financial Corporation
FINANCIAL SERVICES · BANKS - REGIONAL · USA
Heritage Financial Corporation is the banking holding company for Heritage Bank providing various financial services to small and medium-sized businesses and individuals in the United States. The company is headquartered in Olympia, Washington.
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