WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 8689% more annual revenue ($19.93B vs $226.75M). CSWC leads profitability with a 45.5% profit margin vs 22.1%. 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: 7.0Quality: 6.5
Piotroski: 5/9

CSWC

Buy

57

out of 100

Grade: C

Growth: 6.0Profit: 8.0Value: 5.0Quality: 3.5
Piotroski: 1/9Altman Z: 0.60

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.4x10/10

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

CSWC5 strengths · Avg: 9.2/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
45.5%10/10

Keeps 46 of every $100 in revenue as profit

Operating MarginProfitability
75.8%10/10

Strong operational efficiency at 75.8%

P/E RatioValuation
13.0x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
28.7%8/10

Earnings expanding 28.7% YoY

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

CSWC4 concerns · Avg: 2.5/10
Market CapQuality
$1.42B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
12.542/10

Expensive relative to growth rate

Revenue GrowthGrowth
-4.0%2/10

Revenue declined 4.0%

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 : CSWC

The strongest argument for CSWC centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 45.5% and operating margin at 75.8%.

Bear Case : ACGL

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

Bear Case : CSWC

The primary concerns for CSWC are Market Cap, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

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

CSWC carries more volatility with a beta of 0.77 — expect wider price swings.

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

ACGL generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (81/100 vs 57/100), 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.

Capital Southwest Corporation

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Capital Southwest Corporation (CSWC) is a leading publicly traded business development company dedicated to providing customized financing solutions to middle-market enterprises. The firm focuses on strategic debt and equity investments, targeting growth sectors such as healthcare, technology, and manufacturing, with the goal of delivering compelling risk-adjusted returns to shareholders. Leveraging extensive industry relationships and private equity expertise, CSWC actively fosters operational improvements and long-term value creation for its portfolio companies, establishing itself as a trusted partner in their expansion efforts.

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