WallStSmart

Arch Capital Group Ltd. (ACGL)vsState Street Corp (STT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 37% more annual revenue ($19.78B vs $14.39B). ACGL leads profitability with a 24.6% profit margin vs 21.3%. 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

STT

Buy

63

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 6.3Quality: 3.5
Piotroski: 5/9Altman Z: -0.03

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

STT4 strengths · Avg: 8.3/10
Profit MarginProfitability
21.3%9/10

Keeps 21 of every $100 in revenue as profit

P/E RatioValuation
16.4x8/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
27.8%8/10

Strong operational efficiency at 27.8%

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

STT4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.093/10

Elevated debt levels

Revenue GrowthGrowth
-2.8%2/10

Revenue declined 2.8%

EPS GrowthGrowth
-24.1%2/10

Earnings declined 24.1%

Free Cash FlowQuality
$-12.41B2/10

Negative free cash flow — burning cash

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 : 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 1.09 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

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

Bear Case : STT

The primary concerns for STT are Debt/Equity, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

STT carries more volatility with a beta of 1.45 — expect wider price swings.

STT is growing revenue faster at -2.8% — sustainability is the question.

ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.

Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ACGL scores higher overall (79/100 vs 63/100), backed by strong 24.6% margins. Both earn "Strong 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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