Arch Capital Group Ltd. (ACGL)vsHSBC Holdings PLC ADR (HSBC)
ACGL
Arch Capital Group Ltd.
$103.36
+3.26%
FINANCIAL SERVICES · Cap: $35.41B
HSBC
HSBC Holdings PLC ADR
$103.38
+1.62%
FINANCIAL SERVICES · Cap: $345.06B
Smart Verdict
WallStSmart Research — data-driven comparison
HSBC Holdings PLC ADR generates 222% more annual revenue ($63.77B vs $19.78B). HSBC leads profitability with a 35.0% profit margin vs 24.6%. HSBC appears more attractively valued with a PEG of 1.00. ACGL earns a higher WallStSmart Score of 79/100 (B+).
ACGL
Strong Buy79
out of 100
Grade: B+
HSBC
Buy63
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Earnings expanding 94.6% YoY
Every $100 of equity generates 20 in profit
Keeps 25 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Mega-cap, among the largest globally
Keeps 35 of every $100 in revenue as profit
Strong operational efficiency at 50.7%
Growing faster than its price suggests
Attractively priced relative to earnings
Areas to Watch
Revenue declined 3.3%
Distress zone — elevated risk
Trading at 8.1x book value
3.3% revenue growth
2.6% earnings growth
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ACGL
The strongest argument for ACGL centers on P/E Ratio, EPS Growth, Return on Equity. 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 : HSBC
The strongest argument for HSBC centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 35.0% and operating margin at 50.7%. PEG of 1.00 suggests the stock is reasonably priced for its growth.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, Altman Z-Score.
Bear Case : HSBC
The primary concerns for HSBC are Price/Book, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
ACGL profiles as a declining stock while HSBC is a value play — different risk/reward profiles.
HSBC carries more volatility with a beta of 0.56 — expect wider price swings.
HSBC is growing revenue faster at 3.3% — sustainability is the question.
Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ACGL scores higher overall (79/100 vs 63/100), 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.
HSBC Holdings PLC ADR
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
HSBC Holdings plc offers banking and financial products and services globally. The company is headquartered in London, the United Kingdom.
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