Arch Capital Group Ltd. (ACGL)vsVersaBank (VBNK)
ACGL
Arch Capital Group Ltd.
$97.81
-0.91%
FINANCIAL SERVICES · Cap: $33.45B
VBNK
VersaBank
$19.99
-2.15%
FINANCIAL SERVICES · Cap: $627.82M
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 13851% more annual revenue ($19.23B vs $137.85M). ACGL leads profitability with a 24.4% profit margin vs 22.0%. ACGL trades at a lower P/E of 7.6x. ACGL earns a higher WallStSmart Score of 67/100 (B-).
ACGL
Strong Buy67
out of 100
Grade: B-
VBNK
Buy52
out of 100
Grade: C-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 26.6%
Generating 2.5B in free cash flow
Keeps 22 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Strong operational efficiency at 27.4%
Revenue surging 29.5% year-over-year
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Moderate valuation
Smaller company, higher risk/reward
ROE of 5.5% — below average capital efficiency
Weak financial health signals
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 24.4% and operating margin at 26.6%. PEG of 1.06 suggests the stock is reasonably priced for its growth.
Bull Case : VBNK
The strongest argument for VBNK centers on Profit Margin, Debt/Equity, Price/Book. Profitability is solid with margins at 22.0% and operating margin at 27.4%. Revenue growth of 29.5% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : VBNK
The primary concerns for VBNK are P/E Ratio, Market Cap, Return on Equity.
Key Dynamics to Monitor
ACGL profiles as a declining stock while VBNK is a growth play — different risk/reward profiles.
VBNK carries more volatility with a beta of 1.10 — expect wider price swings.
VBNK is growing revenue faster at 29.5% — sustainability is the question.
ACGL generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (67/100 vs 52/100), backed by strong 24.4% 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.
VersaBank
FINANCIAL SERVICES · BANKS - REGIONAL · USA
VersaBank (VBNK) is a pioneering digital bank headquartered in London, Ontario, distinguished for its innovative technology-driven banking solutions. By leveraging a cutting-edge cloud-based infrastructure, VersaBank enhances operational efficiency while ensuring robust cybersecurity measures, crucial in today's increasingly digital financial landscape. Focusing on both commercial and residential lending, the bank is well-positioned to adapt to evolving consumer demands and capitalize on the ongoing digital transformation in the financial sector. As a leader in Canadian digital banking, VersaBank is strategically equipped to navigate complex markets and unlock new growth opportunities.
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