WallStSmart

Arch Capital Group Ltd (ACGL)vsServisFirst Bancshares Inc (SFBS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 3531% more annual revenue ($19.93B vs $548.91M). SFBS leads profitability with a 54.0% profit margin vs 22.1%. ACGL trades at a lower P/E of 8.4x. 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

SFBS

Strong Buy

68

out of 100

Grade: B-

Growth: 9.3Profit: 8.0Value: 6.0Quality: 4.5
Piotroski: 5/9

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

SFBS6 strengths · Avg: 8.7/10
Profit MarginProfitability
54.0%10/10

Keeps 54 of every $100 in revenue as profit

Operating MarginProfitability
69.9%10/10

Strong operational efficiency at 69.9%

P/E RatioValuation
14.7x8/10

Attractively priced relative to earnings

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
18.5%8/10

18.5% revenue growth

EPS GrowthGrowth
31.2%8/10

Earnings expanding 31.2% YoY

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

SFBS0 concerns · Avg: 0/10

No major concerns identified

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 : SFBS

The strongest argument for SFBS centers on Profit Margin, Operating Margin, P/E Ratio. Profitability is solid with margins at 54.0% and operating margin at 69.9%. Revenue growth of 18.5% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : SFBS

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

Key Dynamics to Monitor

ACGL profiles as a mature stock while SFBS is a growth play — different risk/reward profiles.

SFBS carries more volatility with a beta of 0.89 — expect wider price swings.

SFBS is growing revenue faster at 18.5% — 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 68/100), 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.

ServisFirst Bancshares Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

ServisFirst Bancshares, Inc. is the banking holding company for ServisFirst Bank providing various banking services to individual and corporate clients. The company is headquartered in Birmingham, Alabama.

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