Arch Capital Group Ltd. (ACGL)vsSaratoga Investment Corp (SAR)
ACGL
Arch Capital Group Ltd.
$98.91
+1.12%
FINANCIAL SERVICES · Cap: $33.45B
SAR
Saratoga Investment Corp
$18.69
-0.11%
FINANCIAL SERVICES · Cap: $311.65M
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 15388% more annual revenue ($19.23B vs $124.17M). ACGL leads profitability with a 24.4% profit margin vs 12.7%. ACGL trades at a lower P/E of 7.6x. ACGL earns a higher WallStSmart Score of 67/100 (B-).
ACGL
Strong Buy67
out of 100
Grade: B-
SAR
Hold48
out of 100
Grade: D+
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 2.5B in free cash flow
Reasonable price relative to book value
Strong operational efficiency at 69.0%
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Smaller company, higher risk/reward
Elevated debt levels
Revenue declined 4.8%
Negative free cash flow — burning cash
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 : SAR
The strongest argument for SAR centers on Price/Book, Operating Margin.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : SAR
The primary concerns for SAR are Market Cap, Debt/Equity, Revenue Growth. Debt-to-equity of 1.56 is elevated, increasing financial risk.
Key Dynamics to Monitor
SAR carries more volatility with a beta of 0.59 — expect wider price swings.
SAR is growing revenue faster at -4.8% — sustainability is the question.
ACGL generates stronger free cash flow (2.5B), providing more financial flexibility.
Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ACGL scores higher overall (67/100 vs 48/100), backed by strong 24.4% 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.
Saratoga Investment Corp
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
Saratoga Investment Corp (SAR) is a publicly traded business development company specializing in providing flexible debt and equity capital to middle-market enterprises across various sectors, including healthcare, technology, and consumer products. The firm employs a disciplined investment strategy that prioritizes comprehensive due diligence and risk management to safeguard capital while striving for optimal shareholder returns. With a robust portfolio management approach and a history of consistent dividend payouts, Saratoga offers institutional investors a compelling opportunity to enhance their exposure to alternative investments while benefiting from the growth potential inherent in the middle-market segment.
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