Arch Capital Group Ltd. (ACGL)vsToronto Dominion Bank (TD)
ACGL
Arch Capital Group Ltd.
$107.79
-1.39%
FINANCIAL SERVICES · Cap: $34.24B
TD
Toronto Dominion Bank
$124.74
-0.24%
FINANCIAL SERVICES · Cap: $203.31B
Smart Verdict
WallStSmart Research — data-driven comparison
Toronto Dominion Bank generates 216% more annual revenue ($60.82B vs $19.23B). TD leads profitability with a 26.6% profit margin vs 24.4%. TD appears more attractively valued with a PEG of 1.01. TD earns a higher WallStSmart Score of 78/100 (B+).
ACGL
Strong Buy67
out of 100
Grade: B-
TD
Strong Buy78
out of 100
Grade: B+
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
Mega-cap, among the largest globally
Strong operational efficiency at 38.0%
Keeps 27 of every $100 in revenue as profit
Reasonable price relative to book value
Earnings expanding 45.0% 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
Elevated debt levels
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 : TD
The strongest argument for TD centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 26.6% and operating margin at 38.0%. Revenue growth of 11.5% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : TD
The primary concerns for TD are Free Cash Flow, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.35 is elevated, increasing financial risk.
Key Dynamics to Monitor
ACGL profiles as a declining stock while TD is a mature play — different risk/reward profiles.
TD carries more volatility with a beta of 0.87 — expect wider price swings.
TD is growing revenue faster at 11.5% — sustainability is the question.
ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
TD scores higher overall (78/100 vs 67/100), backed by strong 26.6% margins and 11.5% revenue growth. 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.
Toronto Dominion Bank
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Toronto-Dominion Bank offers a variety of personal and commercial banking products and services in Canada and the United States. The company is headquartered in Toronto, Canada.
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