WallStSmart

Arch Capital Group Ltd. (ACGL)vsNicolet Bankshares Inc. (NIC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 4514% more annual revenue ($19.78B vs $428.66M). NIC leads profitability with a 31.1% 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

NIC

Strong Buy

65

out of 100

Grade: B-

Growth: 6.7Profit: 7.0Value: 5.7Quality: 6.3
Piotroski: 7/9

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

NIC6 strengths · Avg: 9.7/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Profit MarginProfitability
31.1%10/10

Keeps 31 of every $100 in revenue as profit

Operating MarginProfitability
50.5%10/10

Strong operational efficiency at 50.5%

Revenue GrowthGrowth
46.5%10/10

Revenue surging 46.5% year-over-year

Debt/EquityHealth
0.0810/10

Conservative balance sheet, low leverage

P/E RatioValuation
16.0x8/10

Attractively priced relative to earnings

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

NIC3 concerns · Avg: 3.0/10
PEG RatioValuation
1.924/10

Expensive relative to growth rate

Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

EPS GrowthGrowth
-61.1%2/10

Earnings declined 61.1%

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 : NIC

The strongest argument for NIC centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 31.1% and operating margin at 50.5%. Revenue growth of 46.5% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : NIC

The primary concerns for NIC are PEG Ratio, Return on Equity, EPS Growth.

Key Dynamics to Monitor

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

NIC carries more volatility with a beta of 0.70 — expect wider price swings.

NIC is growing revenue faster at 46.5% — 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 65/100), 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.

Nicolet Bankshares Inc.

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Nicolet Bankshares, Inc. is the bank holding company of Nicolet National Bank that offers banking products and services for businesses and individuals. The company is headquartered in Green Bay, Wisconsin.

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