WallStSmart

Arch Capital Group Ltd (ACGL)vsLive Oak Bancshares, Inc. (LOB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 3791% more annual revenue ($19.93B vs $512.21M). LOB leads profitability with a 24.6% profit margin vs 22.1%. ACGL trades at a lower P/E of 8.4x. ACGL earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

81

out of 100

Grade: A-

Growth: 8.7Profit: 8.0Value: 7.0Quality: 6.5
Piotroski: 5/9

LOB

Strong Buy

72

out of 100

Grade: B

Growth: 9.3Profit: 7.0Value: 6.0Quality: 6.5
Piotroski: 4/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

EPS GrowthGrowth
38.8%8/10

Earnings expanding 38.8% YoY

LOB6 strengths · Avg: 9.5/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Operating MarginProfitability
35.5%10/10

Strong operational efficiency at 35.5%

EPS GrowthGrowth
185.7%10/10

Earnings expanding 185.7% YoY

Debt/EquityHealth
0.0810/10

Conservative balance sheet, low leverage

Profit MarginProfitability
24.6%9/10

Keeps 25 of every $100 in revenue as profit

P/E RatioValuation
14.4x8/10

Attractively priced relative to earnings

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

LOB1 concerns · Avg: 3.0/10
Market CapQuality
$1.75B3/10

Smaller company, higher risk/reward

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 22.1% and operating margin at 29.5%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : LOB

The strongest argument for LOB centers on Price/Book, Operating Margin, EPS Growth. Profitability is solid with margins at 24.6% and operating margin at 35.5%. Revenue growth of 29.1% demonstrates continued momentum.

Bear Case : ACGL

No major red flags identified for ACGL, but monitor valuation.

Bear Case : LOB

The primary concerns for LOB are Market Cap.

Key Dynamics to Monitor

ACGL profiles as a mature stock while LOB is a growth play — different risk/reward profiles.

LOB carries more volatility with a beta of 1.90 — expect wider price swings.

LOB is growing revenue faster at 29.1% — sustainability is the question.

ACGL generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (81/100 vs 72/100), backed by strong 22.1% margins. Both earn "Exceptional 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.

Live Oak Bancshares, Inc.

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Live Oak Bancshares, Inc. is the banking holding company for Live Oak Banking Company offering a variety of commercial banking products and services to individuals, small businesses and professionals in North Carolina, United States. The company is headquartered in Wilmington, North Carolina.

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