WallStSmart

Arch Capital Group Ltd. (ACGL)vsProvident Financial Holdings Inc (PROV)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 49836% more annual revenue ($19.78B vs $39.60M). ACGL leads profitability with a 24.6% profit margin vs 15.4%. 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: 6.0
Piotroski: 6/9Altman Z: 1.48

PROV

Hold

47

out of 100

Grade: D+

Growth: 4.0Profit: 6.0Value: 4.3Quality: 3.5
Piotroski: 4/9Altman Z: -0.42

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 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

PROV2 strengths · Avg: 9.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Operating MarginProfitability
21.6%8/10

Strong operational efficiency at 21.6%

Areas to Watch

ACGL2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

PROV4 concerns · Avg: 2.8/10
Market CapQuality
$106.69M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
4.8%3/10

ROE of 4.8% — below average capital efficiency

Debt/EquityHealth
1.473/10

Elevated debt levels

PEG RatioValuation
4.002/10

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 : PROV

The strongest argument for PROV centers on Price/Book, Operating Margin. Profitability is solid with margins at 15.4% and operating margin at 21.6%.

Bear Case : ACGL

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

Bear Case : PROV

The primary concerns for PROV are Market Cap, Return on Equity, Debt/Equity.

Key Dynamics to Monitor

PROV carries more volatility with a beta of 0.33 — expect wider price swings.

ACGL is growing revenue faster at -3.3% — sustainability is the question.

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

Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ACGL scores higher overall (79/100 vs 47/100), backed by strong 24.6% margins. Both earn "Strong Buy" and "Hold" 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 Holdings Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Provident Financial Holdings, Inc. is the parent company of Provident Savings Bank, FSB providing community banking services to consumers and small and medium-sized businesses in the Inland Empire region of Southern California. The company is headquartered in Riverside, California.

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