WallStSmart

Arch Capital Group Ltd. (ACGL)vsJefferies Financial Group Inc (JEF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 256% more annual revenue ($19.23B vs $5.40B). ACGL leads profitability with a 24.4% profit margin vs 23.0%. ACGL appears more attractively valued with a PEG of 1.06. JEF earns a higher WallStSmart Score of 77/100 (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

JEF

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 6.0Value: 6.3Quality: 2.5
Piotroski: 3/9Altman Z: 0.84

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
7.7x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

Free Cash FlowQuality
$1.31B8/10

Generating 1.3B in free cash flow

JEF6 strengths · Avg: 9.2/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
35.0%10/10

Revenue surging 35.0% year-over-year

EPS GrowthGrowth
159.8%10/10

Earnings expanding 159.8% YoY

Profit MarginProfitability
23.0%9/10

Keeps 23 of every $100 in revenue as profit

P/E RatioValuation
15.6x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.55B8/10

Generating 1.6B 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

JEF4 concerns · Avg: 2.3/10
Return on EquityProfitability
7.0%3/10

ROE of 7.0% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.842/10

Distress zone — elevated risk

Debt/EquityHealth
3.481/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, Profit Margin. 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 : JEF

The strongest argument for JEF centers on Price/Book, Revenue Growth, EPS Growth. Profitability is solid with margins at 23.0% and operating margin at 16.9%. Revenue growth of 35.0% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : JEF

The primary concerns for JEF are Return on Equity, Piotroski F-Score, Altman Z-Score. Debt-to-equity of 3.48 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

JEF carries more volatility with a beta of 1.50 — expect wider price swings.

JEF is growing revenue faster at 35.0% — sustainability is the question.

JEF generates stronger free cash flow (1.6B), providing more financial flexibility.

Bottom Line

JEF scores higher overall (77/100 vs 67/100), backed by strong 23.0% margins and 35.0% 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.

Jefferies Financial Group Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Jefferies Financial Group Inc. is engaged in investment banking and capital markets, asset management, and direct investment businesses in the Americas, Europe, the Middle East, Africa, and Asia. The company is headquartered in New York, New York.

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