WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 6878% more annual revenue ($19.78B vs $283.40M). PFBC leads profitability with a 47.5% profit margin vs 24.6%. PFBC appears more attractively valued with a PEG of 0.94. 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: 6.5
Piotroski: 5/9

PFBC

Strong Buy

74

out of 100

Grade: B

Growth: 6.0Profit: 8.0Value: 7.7Quality: 4.8
Piotroski: 4/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 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

PFBC5 strengths · Avg: 9.6/10
P/E RatioValuation
9.1x10/10

Attractively priced relative to earnings

Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Profit MarginProfitability
47.5%10/10

Keeps 48 of every $100 in revenue as profit

Operating MarginProfitability
66.0%10/10

Strong operational efficiency at 66.0%

PEG RatioValuation
0.948/10

Growing faster than its price suggests

Areas to Watch

ACGL1 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

PFBC2 concerns · Avg: 3.5/10
Revenue GrowthGrowth
3.3%4/10

3.3% revenue growth

Market CapQuality
$1.12B3/10

Smaller company, higher risk/reward

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 : PFBC

The strongest argument for PFBC centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 47.5% and operating margin at 66.0%. PEG of 0.94 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth.

Bear Case : PFBC

The primary concerns for PFBC are Revenue Growth, Market Cap.

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 0.56 — expect wider price swings.

PFBC is growing revenue faster at 3.3% — 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 74/100), 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.

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.

Visit Website →

Want to dig deeper into these stocks?