State Street vs Arch Capital

State Street and Arch Capital compare their business models, financial performance, and market context to provide a neutral overview of how the two organisations operate and relate within the industry. The page aims to be clear and accessible, inviting informed understanding without guidance. Educational content, not financial advice.

State Street and Arch Capital compare their business models, financial performance, and market context to provide a neutral overview of how the two organisations operate and relate within the industry...

Comparison Snapshot

Key Financial Metrics

STT

Metric

ACGL

$35.61B

Market Cap

$33.98B

10.78%

Potential Profit

14.96%

Buy

Analyst Rating

Buy

Why It's Moving

State Street Shares Slide on Higher 2026 Expenses Despite Q4 Earnings Beat

Q4 EPS beat estimates by 6%, yet stock tumbled 6% on the earnings day amid no fresh medium-term targets.
2026 expenses now guided 3%-4% higher year-over-year, topping the 1.6% consensus and signaling rising operational strain.
Analysts split: Morgan Stanley and Truist cut price targets citing expenses, while TD Cowen hiked theirs on banking tailwinds.

Sentiment:

🐻Bearish

ACGL Dips Amid Market Gains as Investors Eye Upcoming Earnings and Board Shakeup

Upcoming Q4 earnings expected to show EPS of $2.34 (up 3.54% YoY) and revenue of $4.73B (up 3.97% YoY), with full-year EPS forecast slightly down at $9.13.
Recent stock price at $92.96, up 0.49% intraday, trading at a discounted Forward P/E of 10.19 versus industry average.
Analysts issue Buy rating with $113 target; JPMorgan recently raised to $117 on January 7.

Sentiment:

⚖️Neutral

State Street Shares Slide on Higher 2026 Expenses Despite Q4 Earnings Beat

Q4 EPS beat estimates by 6%, yet stock tumbled 6% on the earnings day amid no fresh medium-term targets.
2026 expenses now guided 3%-4% higher year-over-year, topping the 1.6% consensus and signaling rising operational strain.
Analysts split: Morgan Stanley and Truist cut price targets citing expenses, while TD Cowen hiked theirs on banking tailwinds.

Sentiment:

🐻Bearish

ACGL Dips Amid Market Gains as Investors Eye Upcoming Earnings and Board Shakeup

Upcoming Q4 earnings expected to show EPS of $2.34 (up 3.54% YoY) and revenue of $4.73B (up 3.97% YoY), with full-year EPS forecast slightly down at $9.13.
Recent stock price at $92.96, up 0.49% intraday, trading at a discounted Forward P/E of 10.19 versus industry average.
Analysts issue Buy rating with $113 target; JPMorgan recently raised to $117 on January 7.

Sentiment:

⚖️Neutral

Investment Analysis

State Street

STT

Pros

Fee revenue grew 11% year-on-year in Q2 2025, driven by strong asset flows and market conditions.
Assets under custody and administration reached a record $51.7 trillion by end-September 2025.
The company maintains a solid dividend yield and has announced a planned 11% increase to its quarterly payout.

Considerations

Earnings per share growth was modest at 1% year-on-year, with stronger growth only evident when excluding notable items.
Expense pressures have emerged, impacting profitability despite strong revenue growth.
The stock's beta of 1.46 suggests higher volatility relative to the broader market.

Arch Capital

ACGL

Pros

Arch Capital Group reported a robust return on equity of 18.38% in the latest period, above its historical average.
The company achieved a net profit margin of 20.75%, reflecting strong underwriting discipline and cost management.
Its debt-to-equity ratio remains low at 11.5%, indicating a conservative capital structure.

Considerations

Future growth prospects are rated weak by some analysts, with limited upside expected in the near term.
The company's dividend yield is modest, and dividend growth has been inconsistent over recent years.
Insurance sector earnings are highly sensitive to natural catastrophes and can fluctuate significantly year-on-year.

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