WallStSmart

Arch Capital Group Ltd. (ACGL)vsSumitomo Mitsui Financial Group Inc (SMFG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sumitomo Mitsui Financial Group Inc generates 22043% more annual revenue ($4.38T vs $19.78B). SMFG leads profitability with a 27.1% 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

SMFG

Strong Buy

78

out of 100

Grade: B+

Growth: 10.0Profit: 8.0Value: 5.7Quality: 4.5
Piotroski: 5/9Altman Z: 0.34

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.2/10
P/E RatioValuation
7.8x10/10

Attractively priced relative to earnings

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

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

SMFG6 strengths · Avg: 9.7/10
Operating MarginProfitability
271.1%10/10

Strong operational efficiency at 271.1%

Revenue GrowthGrowth
36.8%10/10

Revenue surging 36.8% year-over-year

EPS GrowthGrowth
354.6%10/10

Earnings expanding 354.6% YoY

Free Cash FlowQuality
$7.34T10/10

Generating 7.3T in free cash flow

Market CapQuality
$158.52B9/10

Large-cap with strong market position

Profit MarginProfitability
27.1%9/10

Keeps 27 of every $100 in revenue as profit

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

SMFG3 concerns · Avg: 2.3/10
PEG RatioValuation
2.154/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.342/10

Distress zone — elevated risk

Debt/EquityHealth
3.701/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, EPS Growth, Return on Equity. 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 : SMFG

The strongest argument for SMFG centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 27.1% and operating margin at 271.1%. Revenue growth of 36.8% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : SMFG

The primary concerns for SMFG are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 3.70 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

SMFG carries more volatility with a beta of 0.38 — expect wider price swings.

SMFG is growing revenue faster at 36.8% — sustainability is the question.

SMFG generates stronger free cash flow (7.3T), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (79/100 vs 78/100), 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.

Sumitomo Mitsui Financial Group Inc

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Sumitomo Mitsui Financial Group, Inc. provides commercial banking, finance leasing, securities, consumer finance, and other services primarily in Japan. The company is headquartered in Tokyo, Japan.

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