WallStSmart

Arch Capital Group Ltd. (ACGL)vsBRC Group Holdings, Inc. (RILY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 1704% more annual revenue ($19.23B vs $1.07B). RILY leads profitability with a 38.6% profit margin vs 24.4%. RILY trades at a lower P/E of 0.6x. ACGL 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

RILY

Hold

47

out of 100

Grade: D+

Growth: 4.0Profit: 7.0Value: 6.7Quality: 4.5
Piotroski: 5/9Altman Z: 0.64

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
7.7x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

Free Cash FlowQuality
$1.31B8/10

Generating 1.3B in free cash flow

RILY3 strengths · Avg: 9.3/10
P/E RatioValuation
0.6x10/10

Attractively priced relative to earnings

Profit MarginProfitability
38.6%10/10

Keeps 39 of every $100 in revenue as profit

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

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

RILY4 concerns · Avg: 2.3/10
Market CapQuality
$282.60M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-3385.0%2/10

ROE of -3385.0% — below average capital efficiency

EPS GrowthGrowth
-90.0%2/10

Earnings declined 90.0%

Altman Z-ScoreHealth
0.642/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, Profit Margin. 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 : RILY

The strongest argument for RILY centers on P/E Ratio, Profit Margin, Price/Book. Profitability is solid with margins at 38.6% and operating margin at 11.8%. Revenue growth of 10.4% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : RILY

The primary concerns for RILY are Market Cap, Return on Equity, EPS Growth. Debt-to-equity of 9.31 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

RILY carries more volatility with a beta of 1.22 — expect wider price swings.

RILY is growing revenue faster at 10.4% — sustainability is the question.

ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (67/100 vs 47/100), backed by strong 24.4% 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.

BRC Group Holdings, Inc.

FINANCIAL SERVICES · FINANCIAL CONGLOMERATES · USA

B. Riley Financial, Inc. provides collaborative financial services and solutions in North America, Australia and Europe. The company is headquartered in Los Angeles, California.

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