WallStSmart

Arch Capital Group Ltd. (ACGL)vsPerella Weinberg Partners (PWP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 2775% more annual revenue ($19.78B vs $687.99M). ACGL leads profitability with a 24.6% profit margin vs 2.9%. ACGL trades at a lower P/E of 7.8x. 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

PWP

Avoid

28

out of 100

Grade: F

Growth: 3.3Profit: 4.5Value: 4.0Quality: 5.5
Piotroski: 3/9Altman Z: 1.28

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.2/10
P/E RatioValuation
7.8x10/10

Attractively priced relative to earnings

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

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

PWP1 strengths · Avg: 10.0/10
Debt/EquityHealth
-1.1810/10

Conservative balance sheet, low leverage

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

PWP4 concerns · Avg: 2.8/10
Market CapQuality
$1.49B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.9%3/10

2.9% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
62.9x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, EPS Growth, Return on Equity. 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 : PWP

The strongest argument for PWP centers on Debt/Equity.

Bear Case : ACGL

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

Bear Case : PWP

The primary concerns for PWP are Market Cap, Profit Margin, Piotroski F-Score. A P/E of 62.9x leaves little room for execution misses. Thin 2.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

PWP carries more volatility with a beta of 1.65 — 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.

Bottom Line

ACGL scores higher overall (79/100 vs 28/100), backed by strong 24.6% margins. Both earn "Strong Buy" and "Avoid" 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.

Perella Weinberg Partners

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Perella Weinberg Partners (PWP) is a distinguished independent advisory and asset management firm, esteemed for its expertise in mergers and acquisitions, restructuring, and capital raising across a wide array of industries. With a strong global footprint and deep-rooted client relationships, PWP delivers tailored financial solutions that enhance client value and navigate complex market landscapes. Its commitment to a client-centric approach and operational excellence not only sets it apart in the financial sector but also underscores its potential as a strategic investment for institutional investors aiming for sustainable growth.

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