WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 48741% more annual revenue ($19.93B vs $40.80M). ACGL leads profitability with a 22.1% profit margin vs 16.2%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

81

out of 100

Grade: A-

Growth: 8.7Profit: 8.0Value: 7.0Quality: 6.5
Piotroski: 5/9

PROV

Strong Buy

65

out of 100

Grade: B-

Growth: 8.0Profit: 6.0Value: 5.0Quality: 5.0

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

EPS GrowthGrowth
38.8%8/10

Earnings expanding 38.8% YoY

PROV4 strengths · Avg: 9.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

EPS GrowthGrowth
70.2%10/10

Earnings expanding 70.2% YoY

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Operating MarginProfitability
24.4%8/10

Strong operational efficiency at 24.4%

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

PROV3 concerns · Avg: 2.7/10
Market CapQuality
$109.27M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.2%3/10

ROE of 5.2% — below average capital efficiency

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, Profit Margin. Profitability is solid with margins at 22.1% and operating margin at 29.5%. 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, EPS Growth, P/E Ratio. Profitability is solid with margins at 16.2% and operating margin at 24.4%. Revenue growth of 10.9% demonstrates continued momentum.

Bear Case : ACGL

No major red flags identified for ACGL, but monitor valuation.

Bear Case : PROV

The primary concerns for PROV are Market Cap, Return on Equity, PEG Ratio.

Key Dynamics to Monitor

ACGL carries more volatility with a beta of 0.38 — expect wider price swings.

PROV is growing revenue faster at 10.9% — sustainability is the question.

ACGL generates stronger free cash flow (1.4B), providing more financial flexibility.

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

Bottom Line

ACGL scores higher overall (81/100 vs 65/100), backed by strong 22.1% margins. Both earn "Exceptional 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 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.

Want to dig deeper into these stocks?