WallStSmart

Arch Capital Group Ltd (ACGL)vsMerchants Bancorp (MBIN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 3435% more annual revenue ($19.93B vs $563.69M). MBIN leads profitability with a 38.8% 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

MBIN

Buy

51

out of 100

Grade: C-

Growth: 4.7Profit: 7.5Value: 6.0Quality: 4.0
Piotroski: 2/9Altman Z: 0.58

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

MBIN4 strengths · Avg: 9.5/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Profit MarginProfitability
38.8%10/10

Keeps 39 of every $100 in revenue as profit

Operating MarginProfitability
52.0%10/10

Strong operational efficiency at 52.0%

P/E RatioValuation
13.1x8/10

Attractively priced relative to earnings

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

MBIN4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.683/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Revenue GrowthGrowth
-17.6%2/10

Revenue declined 17.6%

EPS GrowthGrowth
-30.6%2/10

Earnings declined 30.6%

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 : MBIN

The strongest argument for MBIN centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 38.8% and operating margin at 52.0%.

Bear Case : ACGL

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

Bear Case : MBIN

The primary concerns for MBIN are Debt/Equity, Piotroski F-Score, Revenue Growth. Debt-to-equity of 1.68 is elevated, increasing financial risk.

Key Dynamics to Monitor

ACGL profiles as a mature stock while MBIN is a declining play — different risk/reward profiles.

MBIN carries more volatility with a beta of 1.16 — expect wider price swings.

ACGL is growing revenue faster at 8.5% — 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 51/100), backed by strong 22.1% margins. Both earn "Exceptional 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.

Merchants Bancorp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Merchants Bancorp is the diversified bank holding company in the United States. The company is headquartered in Carmel, Indiana.

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