WallStSmart

Arch Capital Group Ltd. (ACGL)vsSouthern First Bancshares Inc (SFST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 16125% more annual revenue ($19.78B vs $121.89M). SFST leads profitability with a 28.7% profit margin vs 24.6%. ACGL appears more attractively valued with a PEG of 1.06. 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

SFST

Strong Buy

71

out of 100

Grade: B

Growth: 9.3Profit: 7.5Value: 5.7Quality: 4.5
Piotroski: 6/9Altman Z: -0.77

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

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

SFST6 strengths · Avg: 9.2/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Operating MarginProfitability
41.2%10/10

Strong operational efficiency at 41.2%

EPS GrowthGrowth
83.1%10/10

Earnings expanding 83.1% YoY

Profit MarginProfitability
28.7%9/10

Keeps 29 of every $100 in revenue as profit

P/E RatioValuation
13.8x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
26.2%8/10

Revenue surging 26.2% year-over-year

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

SFST3 concerns · Avg: 3.0/10
PEG RatioValuation
2.314/10

Expensive relative to growth rate

Market CapQuality
$557.57M3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
-0.772/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, EPS Growth. 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 : SFST

The strongest argument for SFST centers on Price/Book, Operating Margin, EPS Growth. Profitability is solid with margins at 28.7% and operating margin at 41.2%. Revenue growth of 26.2% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : SFST

The primary concerns for SFST are PEG Ratio, Market Cap, Altman Z-Score.

Key Dynamics to Monitor

ACGL profiles as a declining stock while SFST is a growth play — different risk/reward profiles.

SFST carries more volatility with a beta of 0.69 — expect wider price swings.

SFST is growing revenue faster at 26.2% — 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 71/100), backed by strong 24.6% margins. Both earn "Strong 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.

Southern First Bancshares Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Southern First Bancshares, Inc. is the banking holding company for Southern First Bank offering various banking products and services to the general public in South Carolina, North Carolina and Georgia. The company is headquartered in Greenville, South Carolina.

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