Arch Capital Group Ltd (ACGL)vsTexas Capital Bancshares Inc (TCBI)
ACGL
Arch Capital Group Ltd
$94.46
+1.88%
FINANCIAL SERVICES · Cap: $34.58B
TCBI
Texas Capital Bancshares Inc
$100.70
+2.19%
FINANCIAL SERVICES · Cap: $4.30B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd generates 1500% more annual revenue ($19.93B vs $1.25B). TCBI leads profitability with a 28.7% profit margin vs 22.1%. 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-
TCBI
Strong Buy79
out of 100
Grade: B+
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
Reasonable price relative to book value
Strong operational efficiency at 32.2%
Earnings expanding 69.6% YoY
Keeps 29 of every $100 in revenue as profit
Attractively priced relative to earnings
16.9% revenue growth
Areas to Watch
No major concerns identified
Distress zone — elevated risk
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 : TCBI
The strongest argument for TCBI centers on Price/Book, Operating Margin, EPS Growth. Profitability is solid with margins at 28.7% and operating margin at 32.2%. Revenue growth of 16.9% demonstrates continued momentum.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : TCBI
The primary concerns for TCBI are Altman Z-Score.
Key Dynamics to Monitor
ACGL profiles as a mature stock while TCBI is a growth play — different risk/reward profiles.
TCBI carries more volatility with a beta of 0.67 — expect wider price swings.
TCBI is growing revenue faster at 16.9% — 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 79/100), backed by strong 22.1% margins. 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.
Texas Capital Bancshares Inc
FINANCIAL SERVICES · BANKS - REGIONAL · USA
Texas Capital Bancshares, Inc. is the banking holding company for Texas Capital Bank, a National Association that offers various banking products and services for commercial companies, professionals and entrepreneurs. The company is headquartered in Dallas, Texas.
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