Arch Capital Group Ltd. (ACGL)vsLloyds Banking Group PLC ADR (LYG)
ACGL
Arch Capital Group Ltd.
$88.34
+0.58%
FINANCIAL SERVICES · Cap: $32.03B
LYG
Lloyds Banking Group PLC ADR
$5.45
+1.48%
FINANCIAL SERVICES · Cap: $79.12B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 3% more annual revenue ($19.78B vs $19.13B). LYG leads profitability with a 26.5% profit margin vs 24.6%. LYG appears more attractively valued with a PEG of 1.05. ACGL earns a higher WallStSmart Score of 79/100 (B+).
ACGL
Strong Buy79
out of 100
Grade: B+
LYG
Strong Buy72
out of 100
Grade: B
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
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
Strong operational efficiency at 41.4%
Large-cap with strong market position
Keeps 27 of every $100 in revenue as profit
Attractively priced relative to earnings
Earnings expanding 44.7% YoY
Areas to Watch
Revenue declined 3.3%
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull 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 : LYG
The strongest argument for LYG centers on Price/Book, Operating Margin, Market Cap. Profitability is solid with margins at 26.5% and operating margin at 41.4%. Revenue growth of 11.5% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, Altman Z-Score.
Bear Case : LYG
The primary concerns for LYG are Debt/Equity. Debt-to-equity of 2.10 is elevated, increasing financial risk.
Key Dynamics to Monitor
ACGL profiles as a declining stock while LYG is a mature play — different risk/reward profiles.
LYG carries more volatility with a beta of 0.94 — expect wider price swings.
LYG is growing revenue faster at 11.5% — sustainability is the question.
Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ACGL scores higher overall (79/100 vs 72/100), backed by strong 24.6% margins. 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.
Lloyds Banking Group PLC ADR
FINANCIAL SERVICES · BANKS - REGIONAL · USA
Lloyds Banking Group plc, offers a range of banking and financial services in the UK and internationally. The company is headquartered in London, the United Kingdom.
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