WallStSmart

Arch Capital Group Ltd. (ACGL)vsOFS Capital Corp (OFS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 50223% more annual revenue ($19.78B vs $39.30M). ACGL leads profitability with a 24.6% profit margin vs -95.2%. 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

OFS

Hold

42

out of 100

Grade: D

Growth: 3.0Profit: 5.0Value: 4.7Quality: 3.8
Piotroski: 3/9Altman Z: -0.38

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
1.5x10/10

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

OFS2 strengths · Avg: 10.0/10
Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
68.9%10/10

Strong operational efficiency at 68.9%

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

OFS4 concerns · Avg: 3.3/10
PEG RatioValuation
1.834/10

Expensive relative to growth rate

Market CapQuality
$45.42M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.833/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : OFS

The strongest argument for OFS centers on Price/Book, Operating Margin.

Bear Case : ACGL

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

Bear Case : OFS

The primary concerns for OFS are PEG Ratio, Market Cap, Debt/Equity. Debt-to-equity of 1.83 is elevated, increasing financial risk.

Key Dynamics to Monitor

ACGL profiles as a declining stock while OFS is a turnaround play — different risk/reward profiles.

OFS carries more volatility with a beta of 0.92 — 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.

Bottom Line

ACGL scores higher overall (79/100 vs 42/100), backed by strong 24.6% margins. Both earn "Strong Buy" and "Hold" 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.

OFS Capital Corp

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

OFS Capital Corp (OFS) is a publicly traded business development company focused on providing customized capital solutions to middle-market enterprises across the United States. The firm primarily invests in private debt instruments, including senior secured and subordinated debt, while also pursuing selective equity investments to optimize overall returns. Backed by a seasoned management team and a disciplined investment approach, OFS aims to deliver robust risk-adjusted returns for its shareholders. With a strong network of industry connections and acute market insights, the company is adept at recognizing and capitalizing on investment opportunities amidst shifting economic conditions.

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