WallStSmart

Arch Capital Group Ltd. (ACGL)vsGCM Grosvenor Inc (GCMG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 3477% more annual revenue ($19.78B vs $552.85M). ACGL leads profitability with a 24.6% profit margin vs 9.1%. ACGL trades at a lower P/E of 7.2x. 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

GCMG

Buy

54

out of 100

Grade: C-

Growth: 6.0Profit: 8.0Value: 5.3Quality: 5.0
Piotroski: 3/9Altman Z: 1.75

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

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

GCMG2 strengths · Avg: 10.0/10
Return on EquityProfitability
197.6%10/10

Every $100 of equity generates 198 in profit

EPS GrowthGrowth
104.4%10/10

Earnings expanding 104.4% YoY

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

GCMG4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.754/10

Distress zone — elevated risk

Market CapQuality
$685.35M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
28.2x2/10

Trading at 28.2x book value

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 : GCMG

The strongest argument for GCMG centers on Return on Equity, EPS Growth.

Bear Case : ACGL

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

Bear Case : GCMG

The primary concerns for GCMG are Altman Z-Score, Market Cap, Piotroski F-Score. Debt-to-equity of 16.26 is elevated, increasing financial risk.

Key Dynamics to Monitor

ACGL profiles as a declining stock while GCMG is a value play — different risk/reward profiles.

GCMG carries more volatility with a beta of 0.87 — expect wider price swings.

GCMG is growing revenue faster at -1.2% — sustainability is the question.

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

Bottom Line

ACGL scores higher overall (79/100 vs 54/100), 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.

GCM Grosvenor Inc

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

GCM Grosvenor Inc is a leading global alternative investment firm, recognized for its comprehensive asset management and advisory expertise across a wide range of asset classes, including private equity, infrastructure, and real estate. The firm is dedicated to delivering superior client service through innovative investment strategies informed by deep industry knowledge, catering to a diverse clientele that includes institutional investors and high-net-worth individuals. GCM Grosvenor prioritizes sustainable and responsible investing, aiming to generate attractive risk-adjusted returns while maintaining a progressive stance within the alternative investment landscape and leveraging emerging market opportunities for growth.

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