WallStSmart

Arch Capital Group Ltd. (ACGL)vsNortheast Bancorp (NBN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 8489% more annual revenue ($19.78B vs $230.26M). NBN leads profitability with a 42.7% profit margin vs 24.6%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 79/100 (B+).

ACGL

Strong Buy

79

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

NBN

Strong Buy

75

out of 100

Grade: B+

Growth: 10.0Profit: 8.0Value: 5.7Quality: 3.5
Piotroski: 5/9Altman Z: -0.44

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

Profit MarginProfitability
24.6%9/10

Keeps 25 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

NBN6 strengths · Avg: 9.7/10
P/E RatioValuation
10.4x10/10

Attractively priced relative to earnings

Profit MarginProfitability
42.7%10/10

Keeps 43 of every $100 in revenue as profit

Operating MarginProfitability
65.5%10/10

Strong operational efficiency at 65.5%

Revenue GrowthGrowth
34.6%10/10

Revenue surging 34.6% year-over-year

EPS GrowthGrowth
58.3%10/10

Earnings expanding 58.3% YoY

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Areas to Watch

ACGL2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

NBN4 concerns · Avg: 2.5/10
Market CapQuality
$1.04B3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.303/10

Elevated debt levels

PEG RatioValuation
5.272/10

Expensive relative to growth rate

Free Cash FlowQuality
$-10.41M2/10

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, 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 : NBN

The strongest argument for NBN centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 42.7% and operating margin at 65.5%. Revenue growth of 34.6% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : NBN

The primary concerns for NBN are Market Cap, Debt/Equity, PEG Ratio.

Key Dynamics to Monitor

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

NBN carries more volatility with a beta of 0.60 — expect wider price swings.

NBN is growing revenue faster at 34.6% — sustainability is the question.

ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (79/100 vs 75/100), 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.

Northeast Bancorp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Northeast Bank offers personal and business banking services in Maine, United States. The company is headquartered in Portland, Maine.

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