WallStSmart

Arch Capital Group Ltd (ACGL)vsPennantPark Floating Rate Capital Ltd (PFLT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 7377% more annual revenue ($19.78B vs $264.51M). ACGL leads profitability with a 24.6% profit margin vs 13.0%. PFLT appears more attractively valued with a PEG of 0.26. 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: 6.5
Piotroski: 5/9

PFLT

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 6.5Value: 7.0Quality: 5.0

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
21.3%9/10

Every $100 of equity generates 21 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

PFLT3 strengths · Avg: 10.0/10
PEG RatioValuation
0.2610/10

Growing faster than its price suggests

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Operating MarginProfitability
77.8%10/10

Strong operational efficiency at 77.8%

Areas to Watch

ACGL1 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

PFLT4 concerns · Avg: 3.5/10
P/E RatioValuation
27.7x4/10

Moderate valuation

Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Market CapQuality
$907.84M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
3.4%3/10

ROE of 3.4% — below average capital efficiency

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 : PFLT

The strongest argument for PFLT centers on PEG Ratio, Price/Book, Operating Margin. PEG of 0.26 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth.

Bear Case : PFLT

The primary concerns for PFLT are P/E Ratio, Revenue Growth, Market Cap.

Key Dynamics to Monitor

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

PFLT carries more volatility with a beta of 0.78 — expect wider price swings.

PFLT is growing revenue faster at 4.6% — 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 56/100), 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.

PennantPark Floating Rate Capital Ltd

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

PennantPark Floating Rate Capital Ltd (PFLT) is a prominent business development company that specializes in offering flexible financing solutions, predominantly through floating rate loans to middle-market enterprises. With a strong emphasis on capital preservation and generating consistent income, PFLT seeks to deliver compelling risk-adjusted returns by maintaining a diversified portfolio of debt instruments. Backed by an experienced management team and strategic partnerships, the company is well-positioned to adapt to evolving market dynamics while capitalizing on growth opportunities within the middle-market lending sector.

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