WallStSmart

Arch Capital Group Ltd (ACGL)vsSaratoga Investment Corp (SAR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 15610% more annual revenue ($19.78B vs $125.89M). SAR leads profitability with a 30.6% profit margin vs 24.6%. ACGL trades at a lower P/E of 7.2x. 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

SAR

Buy

54

out of 100

Grade: C-

Growth: 6.0Profit: 8.0Value: 6.7Quality: 6.3
Piotroski: 4/9

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

SAR4 strengths · Avg: 10.0/10
P/E RatioValuation
9.7x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
30.6%10/10

Keeps 31 of every $100 in revenue as profit

Operating MarginProfitability
67.9%10/10

Strong operational efficiency at 67.9%

Areas to Watch

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

Revenue declined 3.3%

SAR3 concerns · Avg: 2.7/10
Market CapQuality
$381.75M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.853/10

Elevated debt levels

Revenue GrowthGrowth
-11.8%2/10

Revenue declined 11.8%

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 : SAR

The strongest argument for SAR centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 30.6% and operating margin at 67.9%.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth.

Bear Case : SAR

The primary concerns for SAR are Market Cap, Debt/Equity, Revenue Growth. Debt-to-equity of 1.85 is elevated, increasing financial risk.

Key Dynamics to Monitor

SAR carries more volatility with a beta of 0.60 — 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.

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

Bottom Line

ACGL scores higher overall (79/100 vs 54/100), 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.

Saratoga Investment Corp

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Saratoga Investment Corp (SAR) is a publicly traded business development company focused on delivering flexible debt and equity capital to middle-market companies across diverse sectors such as healthcare, technology, and consumer products. The firm employs a disciplined investment strategy characterized by extensive due diligence and strong risk management, prioritizing capital preservation alongside the enhancement of shareholder returns. With its proactive approach to portfolio management and a track record of reliable dividend distributions, Saratoga presents an appealing opportunity for institutional investors seeking to diversify within the alternative asset landscape.

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