WallStSmart

Arch Capital Group Ltd. (ACGL)vsHeritage Financial Corporation (HFWA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 7347% more annual revenue ($19.78B vs $265.57M). HFWA leads profitability with a 27.3% profit margin vs 24.6%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 79/100 (B+).

ACGL

Strong Buy

79

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

HFWA

Strong Buy

71

out of 100

Grade: B

Growth: 8.0Profit: 7.0Value: 5.7Quality: 7.5
Piotroski: 7/9Altman Z: 0.40

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.5x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

Profit MarginProfitability
24.6%9/10

Keeps 25 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

HFWA6 strengths · Avg: 9.5/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Operating MarginProfitability
32.3%10/10

Strong operational efficiency at 32.3%

Revenue GrowthGrowth
37.2%10/10

Revenue surging 37.2% year-over-year

Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Profit MarginProfitability
27.3%9/10

Keeps 27 of every $100 in revenue as profit

P/E RatioValuation
13.7x8/10

Attractively priced relative to earnings

Areas to Watch

ACGL2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

HFWA4 concerns · Avg: 3.0/10
PEG RatioValuation
2.134/10

Expensive relative to growth rate

Market CapQuality
$1.15B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

Altman Z-ScoreHealth
0.402/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, EPS Growth. Profitability is solid with margins at 24.6% and operating margin at 25.3%. 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, Operating Margin, Revenue Growth. Profitability is solid with margins at 27.3% and operating margin at 32.3%. Revenue growth of 37.2% demonstrates continued momentum.

Bear Case : ACGL

The primary concerns for ACGL are Revenue 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 0.51 — expect wider price swings.

HFWA is growing revenue faster at 37.2% — sustainability is the question.

ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (79/100 vs 71/100), backed by strong 24.6% 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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