WallStSmart

Arch Capital Group Ltd. (ACGL)vsProvident Financial Services Inc (PFS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 2051% more annual revenue ($19.23B vs $894.27M). PFS leads profitability with a 35.0% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. PFS earns a higher WallStSmart Score of 67/100 (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

PFS

Strong Buy

67

out of 100

Grade: B-

Growth: 6.7Profit: 7.5Value: 6.3Quality: 3.5
Piotroski: 5/9Altman Z: -0.52

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%

PFS4 strengths · Avg: 10.0/10
P/E RatioValuation
10.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
35.0%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
52.3%10/10

Strong operational efficiency at 52.3%

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

PFS4 concerns · Avg: 3.3/10
PEG RatioValuation
1.614/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.8%4/10

3.8% revenue growth

Debt/EquityHealth
1.013/10

Elevated debt levels

Altman Z-ScoreHealth
-0.522/10

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 : PFS

The strongest argument for PFS centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 35.0% and operating margin at 52.3%.

Bear Case : ACGL

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

Bear Case : PFS

The primary concerns for PFS are PEG Ratio, Revenue Growth, Debt/Equity.

Key Dynamics to Monitor

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

PFS carries more volatility with a beta of 0.78 — expect wider price swings.

PFS is growing revenue faster at 3.8% — sustainability is the question.

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

Bottom Line

ACGL scores higher overall (67/100 vs 67/100), backed by strong 24.4% 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.

Provident Financial Services Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Provident Financial Services, Inc. is the banking holding company for Provident Bank offering various banking products and services to individuals, families and businesses in the United States. The company is headquartered in Jersey City, New Jersey.

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