WallStSmart

Arch Capital Group Ltd. (ACGL)vsCapital Southwest Corporation (CSWC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 8008% more annual revenue ($19.23B vs $237.21M). CSWC leads profitability with a 46.7% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 67/100 (B-).

ACGL

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

CSWC

Buy

57

out of 100

Grade: C

Growth: 6.7Profit: 8.0Value: 5.0Quality: 5.3
Piotroski: 4/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
7.7x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

Free Cash FlowQuality
$1.31B8/10

Generating 1.3B in free cash flow

CSWC5 strengths · Avg: 9.2/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Profit MarginProfitability
46.7%10/10

Keeps 47 of every $100 in revenue as profit

Operating MarginProfitability
75.8%10/10

Strong operational efficiency at 75.8%

P/E RatioValuation
13.4x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
28.7%8/10

Earnings expanding 28.7% YoY

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

CSWC4 concerns · Avg: 2.3/10
Market CapQuality
$1.54B3/10

Smaller company, higher risk/reward

PEG RatioValuation
12.542/10

Expensive relative to growth rate

Revenue GrowthGrowth
-4.0%2/10

Revenue declined 4.0%

Free Cash FlowQuality
$-80.87M2/10

Negative free cash flow — burning cash

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 24.4% and operating margin at 26.6%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : CSWC

The strongest argument for CSWC centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 46.7% and operating margin at 75.8%.

Bear Case : ACGL

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

Bear Case : CSWC

The primary concerns for CSWC are Market Cap, PEG Ratio, Revenue Growth.

Key Dynamics to Monitor

CSWC carries more volatility with a beta of 0.74 — expect wider price swings.

CSWC is growing revenue faster at -4.0% — sustainability is the question.

ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.

Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ACGL scores higher overall (67/100 vs 57/100), 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.

Capital Southwest Corporation

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Capital Southwest Corporation (CSWC) is a leading publicly traded business development company that specializes in providing customized financing solutions for middle-market enterprises. With a diversified investment portfolio that spans debt and equity across critical sectors including healthcare, technology, and manufacturing, CSWC aims to deliver attractive risk-adjusted returns to its investors. The company leverages its extensive industry knowledge and strategic networks to not only foster operational efficiencies within its portfolio but also drive sustainable growth, positioning itself as a vital partner in the dynamic business environment.

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