WallStSmart

Arch Capital Group Ltd (ACGL)vsSun Life Financial Inc. (SLF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sun Life Financial Inc. generates 75% more annual revenue ($34.88B vs $19.93B). ACGL leads profitability with a 22.1% profit margin vs 10.2%. SLF appears more attractively valued with a PEG of 0.88. ACGL earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

81

out of 100

Grade: A-

Growth: 8.7Profit: 8.0Value: 10.0Quality: 6.5
Piotroski: 5/9

SLF

Strong Buy

74

out of 100

Grade: B

Growth: 8.0Profit: 7.5Value: 10.0Quality: 5.3
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ACGLUndervalued (+81.8%)

Margin of Safety

+81.8%

Fair Value

$542.88

Current Price

$92.30

$450.58 discount

UndervaluedFair: $542.88Overvalued
SLFUndervalued (+69.0%)

Margin of Safety

+69.0%

Fair Value

$209.66

Current Price

$62.07

$147.59 discount

UndervaluedFair: $209.66Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.0x10/10

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

SLF5 strengths · Avg: 8.4/10
EPS GrowthGrowth
240.9%10/10

Earnings expanding 240.9% YoY

PEG RatioValuation
0.888/10

Growing faster than its price suggests

P/E RatioValuation
13.8x8/10

Attractively priced relative to earnings

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$5.28B8/10

Generating 5.3B in free cash flow

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

SLF1 concerns · Avg: 4.0/10
Revenue GrowthGrowth
4.7%4/10

4.7% revenue growth

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 : SLF

The strongest argument for SLF centers on EPS Growth, PEG Ratio, P/E Ratio. PEG of 0.88 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

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

Bear Case : SLF

The primary concerns for SLF are Revenue Growth.

Key Dynamics to Monitor

ACGL profiles as a mature stock while SLF is a value play — different risk/reward profiles.

SLF carries more volatility with a beta of 0.80 — expect wider price swings.

ACGL is growing revenue faster at 8.5% — sustainability is the question.

SLF generates stronger free cash flow (5.3B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (81/100 vs 74/100), backed by strong 22.1% margins. SLF offers better value entry with a 69.0% margin of safety. 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.

Sun Life Financial Inc.

FINANCIAL SERVICES · INSURANCE - DIVERSIFIED · USA

Sun Life Financial Inc., a financial services company, provides insurance, wealth and asset management solutions to individuals and corporate clients around the world. The company is headquartered in Toronto, Canada.

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