Arch Capital Group Ltd. (ACGL)vsState Street Corp (STT)
ACGL
Arch Capital Group Ltd.
$102.50
+2.15%
FINANCIAL SERVICES · Cap: $34.24B
STT
State Street Corp
$173.54
+1.55%
FINANCIAL SERVICES · Cap: $46.10B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 24% more annual revenue ($19.23B vs $15.49B). ACGL leads profitability with a 24.4% profit margin vs 23.8%. STT appears more attractively valued with a PEG of 0.67. STT earns a higher WallStSmart Score of 80/100 (A-).
ACGL
Strong Buy67
out of 100
Grade: B-
STT
Exceptional Buy80
out of 100
Grade: A-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Strong operational efficiency at 26.6%
Generating 1.3B in free cash flow
Strong operational efficiency at 34.6%
Keeps 24 of every $100 in revenue as profit
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 32.7% YoY
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Negative free cash flow — burning cash
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ACGL
The strongest argument for ACGL centers on P/E Ratio, Profit Margin, Debt/Equity. Profitability is solid with margins at 24.4% and operating margin at 26.6%. PEG of 1.06 suggests the stock is reasonably priced for its growth.
Bull Case : STT
The strongest argument for STT centers on Operating Margin, Profit Margin, PEG Ratio. Profitability is solid with margins at 23.8% and operating margin at 34.6%. Revenue growth of 13.3% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : STT
The primary concerns for STT are Free Cash Flow, Altman Z-Score.
Key Dynamics to Monitor
ACGL profiles as a declining stock while STT is a mature play — different risk/reward profiles.
STT carries more volatility with a beta of 1.42 — expect wider price swings.
STT is growing revenue faster at 13.3% — sustainability is the question.
ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
STT scores higher overall (80/100 vs 67/100), backed by strong 23.8% margins and 13.3% revenue growth. 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.
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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