WallStSmart

Arch Capital Group Ltd (ACGL)vsGladstone Capital Corporation (GLAD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 21639% more annual revenue ($19.93B vs $91.67M). GLAD leads profitability with a 38.9% 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

GLAD

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 7.5Value: 6.3Quality: 5.0
Piotroski: 4/9Altman Z: 1.19

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

GLAD4 strengths · Avg: 10.0/10
P/E RatioValuation
11.7x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
38.9%10/10

Keeps 39 of every $100 in revenue as profit

Operating MarginProfitability
73.1%10/10

Strong operational efficiency at 73.1%

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

GLAD4 concerns · Avg: 3.0/10
PEG RatioValuation
2.314/10

Expensive relative to growth rate

Market CapQuality
$415.94M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.2%3/10

ROE of 7.2% — below average capital efficiency

EPS GrowthGrowth
-80.1%2/10

Earnings declined 80.1%

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 : GLAD

The strongest argument for GLAD centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 38.9% and operating margin at 73.1%. Revenue growth of 11.6% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : GLAD

The primary concerns for GLAD are PEG Ratio, Market Cap, Return on Equity.

Key Dynamics to Monitor

GLAD carries more volatility with a beta of 0.95 — expect wider price swings.

GLAD is growing revenue faster at 11.6% — sustainability is the question.

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

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

Bottom Line

ACGL scores higher overall (81/100 vs 56/100), 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.

Gladstone Capital Corporation

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Gladstone Capital Corporation (GLAD) is a publicly traded business development company that focuses on providing debt and equity financing to lower middle-market businesses, driving their growth and expansion strategies. The firm adheres to a disciplined investment approach that prioritizes capital preservation while aiming to deliver attractive risk-adjusted returns through bespoke financing structures including term loans and equity investments. With a seasoned management team that possesses extensive industry knowledge, GLAD adeptly navigates various sectors and market trends, positioning itself for consistent performance amid a dynamic financial landscape. As a dedicated partner in long-term value creation, Gladstone Capital Corporation offers innovative financing solutions tailored to the unique needs of its portfolio companies.

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