WallStSmart

Arch Capital Group Ltd. (ACGL)vsHome BancShares Inc (HOMB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 1740% more annual revenue ($19.78B vs $1.07B). HOMB leads profitability with a 44.5% 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: 6.5
Piotroski: 5/9

HOMB

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 7.5Value: 5.7Quality: 5.3
Piotroski: 4/9

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
1.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 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

HOMB4 strengths · Avg: 10.0/10
P/E RatioValuation
10.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Profit MarginProfitability
44.5%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
57.3%10/10

Strong operational efficiency at 57.3%

Areas to Watch

ACGL1 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

HOMB3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.4%4/10

2.4% revenue growth

EPS GrowthGrowth
3.5%4/10

3.5% earnings growth

PEG RatioValuation
3.012/10

Expensive relative to growth rate

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 : HOMB

The strongest argument for HOMB centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 44.5% and operating margin at 57.3%.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth.

Bear Case : HOMB

The primary concerns for HOMB are Revenue Growth, EPS Growth, PEG Ratio.

Key Dynamics to Monitor

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

HOMB carries more volatility with a beta of 0.69 — expect wider price swings.

HOMB is growing revenue faster at 2.4% — 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 59/100), backed by strong 24.6% margins. Both earn "Strong Buy" and "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.

Home BancShares Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Home Bancshares, Inc. (Conway, AR) is the banking holding company of Centennial Bank offering commercial and retail banking and related financial services to real estate companies, developers and investors, individuals and municipalities. The company is headquartered in Conway, Arkansas.

Want to dig deeper into these stocks?