Arch Capital Group Ltd (ACGL)vsStarbucks Corporation (SBUX)
ACGL
Arch Capital Group Ltd
$93.32
-0.30%
FINANCIAL SERVICES · Cap: $33.94B
SBUX
Starbucks Corporation
$92.70
+0.78%
CONSUMER CYCLICAL · Cap: $104.79B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 89% more annual revenue ($37.70B vs $19.93B). ACGL leads profitability with a 22.1% profit margin vs 3.6%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 81/100 (A-).
ACGL
Exceptional Buy81
out of 100
Grade: A-
SBUX
Hold39
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+81.8%
Fair Value
$542.88
Current Price
$93.32
$449.56 discount
Margin of Safety
-1135.9%
Fair Value
$8.02
Current Price
$92.70
$84.68 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 22 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 29.5%
Earnings expanding 38.8% YoY
Large-cap with strong market position
Generating 1.3B in free cash flow
Areas to Watch
No major concerns identified
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
3.6% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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 : SBUX
The strongest argument for SBUX centers on Market Cap, Free Cash Flow.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : SBUX
The primary concerns for SBUX are PEG Ratio, Return on Equity, Profit Margin. A P/E of 78.0x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
ACGL profiles as a mature stock while SBUX is a value play — different risk/reward profiles.
SBUX carries more volatility with a beta of 0.93 — 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.
Bottom Line
ACGL scores higher overall (81/100 vs 39/100), backed by strong 22.1% margins. Both earn "Exceptional 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.
Starbucks Corporation
CONSUMER CYCLICAL · RESTAURANTS · USA
Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. As the world's largest coffeehouse chain, Starbucks is seen to be the main representation of the United States' second wave of coffee culture.
Compare with Other INSURANCE - DIVERSIFIED Stocks
Want to dig deeper into these stocks?