WallStSmart

Arch Capital Group Ltd. (ACGL)vsGladstone Investment Corporation (GAIN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 19861% more annual revenue ($19.78B vs $99.08M). GAIN leads profitability with a 186.5% profit margin vs 24.6%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 79/100 (B+).

ACGL

Strong Buy

79

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

GAIN

Buy

59

out of 100

Grade: C

Growth: 7.3Profit: 6.5Value: 5.7Quality: 4.3
Piotroski: 2/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

Profit MarginProfitability
24.6%9/10

Keeps 25 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

GAIN5 strengths · Avg: 9.8/10
P/E RatioValuation
3.1x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
186.5%10/10

Keeps 187 of every $100 in revenue as profit

EPS GrowthGrowth
326.5%10/10

Earnings expanding 326.5% YoY

Return on EquityProfitability
29.2%9/10

Every $100 of equity generates 29 in profit

Areas to Watch

ACGL2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

GAIN4 concerns · Avg: 2.5/10
Market CapQuality
$588.57M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
5.412/10

Expensive relative to growth rate

Revenue GrowthGrowth
-8.6%2/10

Revenue declined 8.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, EPS Growth. Profitability is solid with margins at 24.6% and operating margin at 25.3%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : GAIN

The strongest argument for GAIN centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 186.5% and operating margin at -0.0%.

Bear Case : ACGL

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

Bear Case : GAIN

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

Key Dynamics to Monitor

GAIN carries more volatility with a beta of 0.76 — expect wider price swings.

ACGL is growing revenue faster at -3.3% — sustainability is the question.

ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.

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

Bottom Line

ACGL scores higher overall (79/100 vs 59/100), backed by strong 24.6% 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.

Gladstone Investment Corporation

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Gladstone Investment Corporation (GAIN) is a publicly traded business development company that focuses on offering tailored financing solutions to small and mid-sized private enterprises via a strategic mix of debt and equity investments. With a diverse portfolio across multiple sectors, GAIN aims to provide both stable income and long-term capital appreciation for its shareholders. Backed by the reputable Gladstone family of funds, the firm is committed to rigorous risk management practices and aligns closely with investor interests, bolstered by an experienced management team and strong industry networks, thus establishing itself as a key participant in the alternative investment sector.

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