WallStSmart

Arch Capital Group Ltd. (ACGL)vsPreferred Bank (PFBC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 6609% more annual revenue ($19.23B vs $286.64M). PFBC leads profitability with a 47.2% profit margin vs 24.4%. PFBC appears more attractively valued with a PEG of 0.94. PFBC earns a higher WallStSmart Score of 69/100 (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

PFBC

Strong Buy

69

out of 100

Grade: B-

Growth: 6.0Profit: 8.0Value: 7.7Quality: 5.3
Piotroski: 4/9Altman Z: 0.50

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.2/10
P/E RatioValuation
7.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

PFBC5 strengths · Avg: 9.2/10
P/E RatioValuation
9.9x10/10

Attractively priced relative to earnings

Profit MarginProfitability
47.2%10/10

Keeps 47 of every $100 in revenue as profit

Operating MarginProfitability
67.4%10/10

Strong operational efficiency at 67.4%

PEG RatioValuation
0.948/10

Growing faster than its price suggests

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

PFBC3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.7%4/10

4.7% revenue growth

Market CapQuality
$1.26B3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
0.502/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, Return on Equity. 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 : PFBC

The strongest argument for PFBC centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 47.2% and operating margin at 67.4%. PEG of 0.94 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

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

Bear Case : PFBC

The primary concerns for PFBC are Revenue Growth, Market Cap, Altman Z-Score.

Key Dynamics to Monitor

ACGL profiles as a declining stock while PFBC is a value play — different risk/reward profiles.

PFBC carries more volatility with a beta of 0.54 — expect wider price swings.

PFBC is growing revenue faster at 4.7% — sustainability is the question.

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

Bottom Line

PFBC scores higher overall (69/100 vs 67/100), backed by strong 47.2% 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.

Preferred Bank

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Preferred Bank offers a variety of commercial banking products and services to small and medium-sized businesses and their real estate owners, entrepreneurs, developers and investors, professionals, and high-net-worth individuals in the United States. The company is headquartered in Los Angeles, California.

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