Arch Capital Group Ltd (ACGL)vsCapital Southwest Corporation (CSWC)
ACGL
Arch Capital Group Ltd
$94.46
+1.88%
FINANCIAL SERVICES · Cap: $34.58B
CSWC
Capital Southwest Corporation
$24.00
+2.04%
FINANCIAL SERVICES · Cap: $1.42B
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 Buy81
out of 100
Grade: A-
CSWC
Buy57
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 22 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 29.5%
Earnings expanding 38.8% YoY
Reasonable price relative to book value
Keeps 46 of every $100 in revenue as profit
Strong operational efficiency at 75.8%
Attractively priced relative to earnings
Earnings expanding 28.7% YoY
Areas to Watch
No major concerns identified
Smaller company, higher risk/reward
Weak financial health signals
Expensive relative to growth rate
Revenue declined 4.0%
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 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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