Arch Capital Group Ltd. (ACGL)vsHeritage Financial Corporation (HFWA)
ACGL
Arch Capital Group Ltd.
$109.24
+0.06%
FINANCIAL SERVICES · Cap: $35.20B
HFWA
Heritage Financial Corporation
$28.21
+0.07%
FINANCIAL SERVICES · Cap: $1.17B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 5854% more annual revenue ($18.78B vs $315.40M). HFWA leads profitability with a 24.6% profit margin vs 23.3%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 67/100 (B-).
ACGL
Strong Buy67
out of 100
Grade: B-
HFWA
Strong Buy66
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Keeps 23 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Strong operational efficiency at 26.8%
Generating 1.7B in free cash flow
Reasonable price relative to book value
Strong operational efficiency at 31.0%
Revenue surging 31.8% year-over-year
Keeps 25 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Areas to Watch
Revenue declined 8.9%
Earnings declined 15.7%
Distress zone — elevated risk
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of 6.5% — below average capital efficiency
Earnings declined 16.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : ACGL
The strongest argument for ACGL centers on P/E Ratio, Profit Margin, Debt/Equity. Profitability is solid with margins at 23.3% and operating margin at 26.8%. 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 24.6% and operating margin at 31.0%. Revenue growth of 31.8% 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 0.51 — expect wider price swings.
HFWA is growing revenue faster at 31.8% — sustainability is the question.
ACGL generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (67/100 vs 66/100), backed by strong 23.3% 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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