WallStSmart

Arch Capital Group Ltd (ACGL)vsMidland States Bancorp Inc (MSBI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 7161% more annual revenue ($19.93B vs $274.47M). ACGL leads profitability with a 22.1% profit margin vs 12.8%. ACGL appears more attractively valued with a PEG of 1.06. 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

MSBI

Strong Buy

65

out of 100

Grade: B-

Growth: 4.0Profit: 6.0Value: 5.7Quality: 5.0

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

MSBI2 strengths · Avg: 10.0/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Operating MarginProfitability
34.0%10/10

Strong operational efficiency at 34.0%

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

MSBI4 concerns · Avg: 2.5/10
Market CapQuality
$537.83M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

EPS GrowthGrowth
-71.2%2/10

Earnings declined 71.2%

Free Cash FlowQuality
$-8.91M2/10

Negative free cash flow — burning cash

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 : MSBI

The strongest argument for MSBI centers on Price/Book, Operating Margin. Revenue growth of 14.3% demonstrates continued momentum. PEG of 1.41 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

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

Bear Case : MSBI

The primary concerns for MSBI are Market Cap, Return on Equity, EPS Growth.

Key Dynamics to Monitor

ACGL profiles as a mature stock while MSBI is a value play — different risk/reward profiles.

MSBI carries more volatility with a beta of 0.56 — expect wider price swings.

MSBI is growing revenue faster at 14.3% — 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 65/100), 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.

Midland States Bancorp Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Midland States Bancorp, Inc. is a financial holding company for Midland States Bank offering various banking products and services to individuals, businesses, municipalities, and other entities. The company is headquartered in Effingham, Illinois.

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