Arch Capital Group Ltd. (ACGL)vsProspect Capital Corporation (PSEC)
ACGL
Arch Capital Group Ltd.
$97.95
+1.94%
FINANCIAL SERVICES · Cap: $33.47B
PSEC
Prospect Capital Corporation
$2.20
-0.90%
FINANCIAL SERVICES · Cap: $1.12B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 2908% more annual revenue ($19.23B vs $639.45M). ACGL leads profitability with a 24.4% profit margin vs 24.0%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 67/100 (B-).
ACGL
Strong Buy67
out of 100
Grade: B-
PSEC
Buy56
out of 100
Grade: C
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 26.6%
Generating 1.3B in free cash flow
Reasonable price relative to book value
Strong operational efficiency at 70.3%
Keeps 24 of every $100 in revenue as profit
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Expensive relative to growth rate
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : ACGL
The strongest argument for ACGL centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 24.4% and operating margin at 26.6%. PEG of 1.06 suggests the stock is reasonably priced for its growth.
Bull Case : PSEC
The strongest argument for PSEC centers on Price/Book, Operating Margin, Profit Margin. Profitability is solid with margins at 24.0% and operating margin at 70.3%.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : PSEC
The primary concerns for PSEC are PEG Ratio, P/E Ratio, Market Cap.
Key Dynamics to Monitor
PSEC carries more volatility with a beta of 0.79 — expect wider price swings.
PSEC is growing revenue faster at -6.7% — sustainability is the question.
ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.
Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ACGL scores higher overall (67/100 vs 56/100), backed by strong 24.4% 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.
Prospect Capital Corporation
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
Prospect Capital Corporation (PSEC) is a prominent publicly traded business development company that specializes in offering customized financing solutions to middle-market enterprises. Boasting a diversified investment portfolio comprising both debt and equity, PSEC concentrates on growth-oriented firms across various sectors, ensuring a strategic approach to capital allocation. The company is committed to generating attractive, risk-adjusted returns for its shareholders while adhering to sustainable investment principles and enhancing social responsibility. PSEC's emphasis on fostering the growth of its portfolio companies positions it as a key partner for business advancement, appealing particularly to socially-conscious investors seeking impactful investment opportunities.
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