WallStSmart

Arch Capital Group Ltd. (ACGL)vsInteractive Brokers Group Inc (IBKR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 181% more annual revenue ($19.23B vs $6.83B). ACGL leads profitability with a 24.4% profit margin vs 16.5%. ACGL appears more attractively valued with a PEG of 1.06. IBKR earns a higher WallStSmart Score of 70/100 (B).

ACGL

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

IBKR

Strong Buy

70

out of 100

Grade: B

Growth: 9.3Profit: 7.5Value: 4.3Quality: 3.0
Piotroski: 3/9Altman Z: 0.41

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.2/10
P/E RatioValuation
7.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

IBKR5 strengths · Avg: 8.6/10
Operating MarginProfitability
76.5%10/10

Strong operational efficiency at 76.5%

Market CapQuality
$150.34B9/10

Large-cap with strong market position

Revenue GrowthGrowth
22.3%8/10

Revenue surging 22.3% year-over-year

EPS GrowthGrowth
36.9%8/10

Earnings expanding 36.9% YoY

Free Cash FlowQuality
$3.58B8/10

Generating 3.6B in free cash flow

Areas to Watch

ACGL3 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-10.5%2/10

Revenue declined 10.5%

EPS GrowthGrowth
-7.1%2/10

Earnings declined 7.1%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

IBKR4 concerns · Avg: 3.3/10
PEG RatioValuation
1.694/10

Expensive relative to growth rate

P/E RatioValuation
35.2x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.412/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, Return on Equity. 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 : IBKR

The strongest argument for IBKR centers on Operating Margin, Market Cap, Revenue Growth. Profitability is solid with margins at 16.5% and operating margin at 76.5%. Revenue growth of 22.3% demonstrates continued momentum.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.

Bear Case : IBKR

The primary concerns for IBKR are PEG Ratio, P/E Ratio, Piotroski F-Score. Debt-to-equity of 7.69 is elevated, increasing financial risk.

Key Dynamics to Monitor

ACGL profiles as a declining stock while IBKR is a growth play — different risk/reward profiles.

IBKR carries more volatility with a beta of 1.34 — expect wider price swings.

IBKR is growing revenue faster at 22.3% — sustainability is the question.

IBKR generates stronger free cash flow (3.6B), providing more financial flexibility.

Bottom Line

IBKR scores higher overall (70/100 vs 67/100), backed by strong 16.5% margins and 22.3% revenue growth. 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.

Interactive Brokers Group Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Interactive Brokers Group, Inc. is a global automated electronic broker. The company is headquartered in Greenwich, Connecticut.

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