WallStSmart

Arch Capital Group Ltd (ACGL)vsSB Financial Group Inc (SBFG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 30777% more annual revenue ($19.93B vs $64.54M). ACGL leads profitability with a 22.1% profit margin vs 21.6%. ACGL trades at a lower P/E of 8.2x. ACGL earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

81

out of 100

Grade: A-

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

SBFG

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 7.0Value: 8.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ACGLUndervalued (+81.8%)

Margin of Safety

+81.8%

Fair Value

$542.88

Current Price

$96.74

$446.14 discount

UndervaluedFair: $542.88Overvalued
SBFGUndervalued (+65.9%)

Margin of Safety

+65.9%

Fair Value

$61.85

Current Price

$20.48

$41.37 discount

UndervaluedFair: $61.85Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.5x10/10

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

SBFG4 strengths · Avg: 9.8/10
P/E RatioValuation
9.6x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Operating MarginProfitability
31.4%10/10

Strong operational efficiency at 31.4%

Profit MarginProfitability
21.6%9/10

Keeps 22 of every $100 in revenue as profit

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

SBFG1 concerns · Avg: 3.0/10
Market CapQuality
$132.35M3/10

Smaller company, higher risk/reward

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 : SBFG

The strongest argument for SBFG centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 21.6% and operating margin at 31.4%.

Bear Case : ACGL

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

Bear Case : SBFG

The primary concerns for SBFG are Market Cap.

Key Dynamics to Monitor

ACGL carries more volatility with a beta of 0.36 — expect wider price swings.

ACGL is growing revenue faster at 8.5% — 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 63/100), backed by strong 22.1% margins. SBFG offers better value entry with a 65.9% margin of safety. Both earn "Exceptional Buy" and "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.

SB Financial Group Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

SB Financial Group, Inc. offers a range of commercial banking and wealth management services to individual and corporate clients primarily in Ohio, Indiana and Michigan. The company is headquartered in Defiance, Ohio.

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