Arch Capital Group Ltd (ACGL)vsState Street Corp (STT)
ACGL
Arch Capital Group Ltd
$94.46
+1.88%
FINANCIAL SERVICES · Cap: $34.58B
STT
State Street Corp
$152.84
+1.42%
FINANCIAL SERVICES · Cap: $42.93B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd generates 38% more annual revenue ($19.93B vs $14.39B). ACGL leads profitability with a 22.1% profit margin vs 21.3%. 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-
STT
Buy63
out of 100
Grade: C+
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
Keeps 21 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 27.8%
Areas to Watch
No major concerns identified
Elevated debt levels
Revenue declined 2.8%
Earnings declined 24.1%
Negative free cash flow — burning cash
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 : STT
The strongest argument for STT centers on Profit Margin, P/E Ratio, Price/Book. Profitability is solid with margins at 21.3% and operating margin at 27.8%. PEG of 1.12 suggests the stock is reasonably priced for its growth.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : STT
The primary concerns for STT are Debt/Equity, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
ACGL profiles as a mature stock while STT is a declining play — different risk/reward profiles.
STT carries more volatility with a beta of 1.38 — 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 63/100), backed by strong 22.1% margins. Both earn "Exceptional Buy" and "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.
State Street Corp
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
State Street Corporation is an American financial services and bank holding company headquartered at One Lincoln Street in Boston with operations worldwide.
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