WallStSmart

Arch Capital Group Ltd (ACGL)vsGoldman Sachs BDC Inc (GSBD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 5352% more annual revenue ($19.93B vs $365.57M). GSBD leads profitability with a 32.6% 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

GSBD

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 7.5Value: 6.3Quality: 5.3
Piotroski: 4/9

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

GSBD4 strengths · Avg: 10.0/10
P/E RatioValuation
9.4x10/10

Attractively priced relative to earnings

Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Profit MarginProfitability
32.6%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
83.5%10/10

Strong operational efficiency at 83.5%

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

GSBD4 concerns · Avg: 3.3/10
PEG RatioValuation
2.154/10

Expensive relative to growth rate

Market CapQuality
$1.09B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
8.0%3/10

ROE of 8.0% — below average capital efficiency

Debt/EquityHealth
1.273/10

Elevated debt levels

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 : GSBD

The strongest argument for GSBD centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 32.6% and operating margin at 83.5%.

Bear Case : ACGL

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

Bear Case : GSBD

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

Key Dynamics to Monitor

ACGL profiles as a mature stock while GSBD is a declining play — different risk/reward profiles.

GSBD carries more volatility with a beta of 0.63 — 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 55/100), 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.

Goldman Sachs BDC Inc

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Goldman Sachs BDC Inc. (GSBD) is a closed-end management investment company that focuses on delivering debt and equity capital to U.S. middle-market enterprises. Backed by the extensive resources and financial expertise of Goldman Sachs, GSBD aims to create shareholder value through a diversified portfolio designed to achieve strong risk-adjusted returns. The company emphasizes a robust distribution policy to provide reliable income streams while strategically pursuing growth opportunities in evolving market conditions, all underpinned by a commitment to sound risk management and cultivating strategic industry relationships.

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