WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 2132% more annual revenue ($19.78B vs $886.01M). PFS leads profitability with a 34.6% 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: 6.5
Piotroski: 5/9

PFS

Strong Buy

73

out of 100

Grade: B

Growth: 8.0Profit: 7.5Value: 6.3Quality: 5.0

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

PFS5 strengths · Avg: 9.6/10
P/E RatioValuation
9.6x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Profit MarginProfitability
34.6%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
53.5%10/10

Strong operational efficiency at 53.5%

EPS GrowthGrowth
24.2%8/10

Earnings expanding 24.2% YoY

Areas to Watch

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

Revenue declined 3.3%

PFS1 concerns · Avg: 4.0/10
PEG RatioValuation
1.614/10

Expensive relative to growth rate

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 : PFS

The strongest argument for PFS centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 34.6% and operating margin at 53.5%.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth.

Bear Case : PFS

The primary concerns for PFS are PEG Ratio.

Key Dynamics to Monitor

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

PFS carries more volatility with a beta of 0.80 — expect wider price swings.

PFS is growing revenue faster at 9.2% — 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 73/100), 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.

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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