WallStSmart

Arch Capital Group Ltd. (ACGL)vsU.S. Bancorp (USB)

VS
⚡

Smart Verdict

WallStSmart Research — data-driven comparison

U.S. Bancorp generates 45% more annual revenue ($27.89B vs $19.23B). USB leads profitability with a 30.0% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. USB earns a higher WallStSmart Score of 75/100 (B).

ACGL

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 8.0Value: 7.0Quality: 6.5
Piotroski: 6/9Altman Z: 1.48

USB

Strong Buy

75

out of 100

Grade: B

Growth: 6.7Profit: 7.5Value: 7.0Quality: 3.5
Piotroski: 4/9Altman Z: -0.36

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 8.7/10
P/E RatioValuation
8.2x10/10

Attractively priced relative to earnings

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

Free Cash FlowQuality
$1.75B8/10

Generating 1.7B in free cash flow

USB6 strengths · Avg: 9.2/10
P/E RatioValuation
11.6x10/10

Attractively priced relative to earnings

Profit MarginProfitability
30.0%10/10

Keeps 30 of every $100 in revenue as profit

Operating MarginProfitability
40.1%10/10

Strong operational efficiency at 40.1%

Market CapQuality
$92.63B9/10

Large-cap with strong market position

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$4.82B8/10

Generating 4.8B in free cash flow

Areas to Watch

ACGL3 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-10.5%2/10

Revenue declined 10.5%

EPS GrowthGrowth
-7.1%2/10

Earnings declined 7.1%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

USB2 concerns · Avg: 2.5/10
Debt/EquityHealth
1.103/10

Elevated debt levels

Altman Z-ScoreHealth
-0.362/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull 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 : USB

The strongest argument for USB centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 30.0% and operating margin at 40.1%. PEG of 1.44 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

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

Bear Case : USB

The primary concerns for USB are Debt/Equity, Altman Z-Score.

Key Dynamics to Monitor

ACGL profiles as a declining stock while USB is a mature play — different risk/reward profiles.

USB carries more volatility with a beta of 1.02 — expect wider price swings.

USB is growing revenue faster at 8.4% — sustainability is the question.

USB generates stronger free cash flow (4.8B), providing more financial flexibility.

Bottom Line

USB scores higher overall (75/100 vs 67/100), backed by strong 30.0% margins. 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.

U.S. Bancorp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

U.S. Bancorp is an American bank holding company based in Minneapolis, Minnesota, and incorporated in Delaware. The company provides banking, investment, mortgage, trust, and payment services products to individuals, businesses, governmental entities, and other financial institutions.

Want to dig deeper into these stocks?