Arch Capital Group Ltd. (ACGL)vsFS Credit Opportunities Corp. (FSCO)
ACGL
Arch Capital Group Ltd.
$98.03
+0.76%
FINANCIAL SERVICES · Cap: $34.28B
FSCO
FS Credit Opportunities Corp.
$5.10
+1.19%
FINANCIAL SERVICES · Cap: $1.01B
Smart Verdict
WallStSmart Research — data-driven comparison
ACGL leads profitability with a 24.4% profit margin vs 0.0%. FSCO trades at a lower P/E of 6.6x. ACGL earns a higher WallStSmart Score of 67/100 (B-).
ACGL
Strong Buy67
out of 100
Grade: B-
FSCO
Avoid34
out of 100
Grade: F
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 26.6%
Generating 2.5B in free cash flow
Attractively priced relative to earnings
Conservative balance sheet, low leverage
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
0.0% revenue growth
0.0% earnings growth
Smaller company, higher risk/reward
0.0% margin — thin
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 24.4% and operating margin at 26.6%. PEG of 1.06 suggests the stock is reasonably priced for its growth.
Bull Case : FSCO
The strongest argument for FSCO centers on P/E Ratio, Debt/Equity.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : FSCO
The primary concerns for FSCO are Revenue Growth, EPS Growth, Market Cap.
Key Dynamics to Monitor
ACGL profiles as a declining stock while FSCO is a value play — different risk/reward profiles.
FSCO is growing revenue faster at 0.0% — sustainability is the question.
ACGL generates stronger free cash flow (2.5B), providing more financial flexibility.
Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ACGL scores higher overall (67/100 vs 34/100), backed by strong 24.4% margins. Both earn "Strong Buy" and "Avoid" 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.
FS Credit Opportunities Corp.
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
FS Credit Opportunities Corp. (FSCO) is a closed-end management investment company focused on providing institutional investors with a diverse portfolio of credit-related assets. Utilizing a multifaceted investment strategy, FSCO specializes in a variety of debt instruments, including first and second lien loans, high-yield bonds, and specialty finance products, aimed at achieving attractive risk-adjusted returns. Driven by a knowledgeable management team, the company employs a disciplined approach to navigate the complexities of credit markets while maintaining a strong commitment to risk management. With its ability to capitalize on market dislocations, FSCO is positioned as a key player in the alternative investment sector, offering potential for sustained income and long-term value creation.
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