WallStSmart

Arch Capital Group Ltd (ACGL)vsVerizon Communications Inc (VZ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Verizon Communications Inc generates 593% more annual revenue ($138.19B vs $19.93B). ACGL leads profitability with a 22.1% profit margin vs 12.4%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

81

out of 100

Grade: A-

Growth: 8.7Profit: 8.0Value: 10.0Quality: 6.5
Piotroski: 5/9

VZ

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 7.0Value: 7.3Quality: 3.8
Piotroski: 2/9Altman Z: 1.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ACGLUndervalued (+81.8%)

Margin of Safety

+81.8%

Fair Value

$542.88

Current Price

$93.60

$449.28 discount

UndervaluedFair: $542.88Overvalued
VZSignificantly Overvalued (-84.4%)

Margin of Safety

-84.4%

Fair Value

$27.61

Current Price

$50.91

$23.30 premium

UndervaluedFair: $27.61Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.1x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

EPS GrowthGrowth
38.8%8/10

Earnings expanding 38.8% YoY

VZ5 strengths · Avg: 8.4/10
Market CapQuality
$210.80B10/10

Mega-cap, among the largest globally

P/E RatioValuation
12.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Operating MarginProfitability
21.0%8/10

Strong operational efficiency at 21.0%

Free Cash FlowQuality
$4.37B8/10

Generating 4.4B in free cash flow

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

VZ4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
2.0%4/10

2.0% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-53.3%2/10

Earnings declined 53.3%

Altman Z-ScoreHealth
1.112/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull 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 : VZ

The strongest argument for VZ centers on Market Cap, P/E Ratio, Price/Book. PEG of 1.23 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

No major red flags identified for ACGL, but monitor valuation.

Bear Case : VZ

The primary concerns for VZ are Revenue Growth, Piotroski F-Score, EPS Growth.

Key Dynamics to Monitor

ACGL profiles as a mature stock while VZ is a value play — different risk/reward profiles.

ACGL carries more volatility with a beta of 0.36 — expect wider price swings.

ACGL is growing revenue faster at 8.5% — sustainability is the question.

VZ generates stronger free cash flow (4.4B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (81/100 vs 62/100), backed by strong 22.1% margins. Both earn "Exceptional 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.

Verizon Communications Inc

COMMUNICATION SERVICES · TELECOM SERVICES · USA

Verizon Communications Inc. is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company is headquartered at 1095 Avenue of the Americas in Midtown Manhattan, New York City, but is incorporated in Delaware.

Want to dig deeper into these stocks?