WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 3669% more annual revenue ($19.23B vs $510.22M). NIC leads profitability with a 30.2% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. NIC earns a higher WallStSmart Score of 71/100 (B).

ACGL

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

NIC

Strong Buy

71

out of 100

Grade: B

Growth: 8.0Profit: 7.0Value: 5.0Quality: 6.8
Piotroski: 7/9Altman Z: 1.30

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
7.7x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

Free Cash FlowQuality
$1.31B8/10

Generating 1.3B in free cash flow

NIC5 strengths · Avg: 9.6/10
Profit MarginProfitability
30.2%10/10

Keeps 30 of every $100 in revenue as profit

Operating MarginProfitability
52.9%10/10

Strong operational efficiency at 52.9%

Revenue GrowthGrowth
86.1%10/10

Revenue surging 86.1% year-over-year

Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Areas to Watch

ACGL3 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-10.5%2/10

Revenue declined 10.5%

EPS GrowthGrowth
-7.1%2/10

Earnings declined 7.1%

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

Altman Z-ScoreHealth
1.302/10

Distress zone — elevated risk

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 24.4% and operating margin at 26.6%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : NIC

The strongest argument for NIC centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 30.2% and operating margin at 52.9%. Revenue growth of 86.1% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : NIC

The primary concerns for NIC are PEG Ratio, Return on Equity, Altman Z-Score.

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 0.64 — expect wider price swings.

NIC is growing revenue faster at 86.1% — sustainability is the question.

ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

NIC scores higher overall (71/100 vs 67/100), backed by strong 30.2% margins and 86.1% revenue growth. 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.

Visit Website →

Want to dig deeper into these stocks?