WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 15632% more annual revenue ($19.78B vs $125.71M). SAR leads profitability with a 29.1% 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: 6.0
Piotroski: 6/9Altman Z: 1.48

SAR

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.0Value: 6.7Quality: 4.3
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
1.5x10/10

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

SAR4 strengths · Avg: 9.8/10
P/E RatioValuation
9.6x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Operating MarginProfitability
71.1%10/10

Strong operational efficiency at 71.1%

Profit MarginProfitability
29.1%9/10

Keeps 29 of every $100 in revenue as profit

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

SAR4 concerns · Avg: 2.5/10
Market CapQuality
$359.52M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.843/10

Elevated debt levels

Revenue GrowthGrowth
-0.6%2/10

Revenue declined 0.6%

Free Cash FlowQuality
$-92.42M2/10

Negative free cash flow — burning cash

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, Operating Margin. Profitability is solid with margins at 29.1% and operating margin at 71.1%.

Bear Case : ACGL

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

Bear Case : SAR

The primary concerns for SAR are Market Cap, Debt/Equity, Revenue Growth. Debt-to-equity of 1.84 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 -0.6% — 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 that focuses on delivering flexible debt and equity capital to middle-market enterprises across diverse sectors such as healthcare, technology, and consumer products. With a disciplined investment approach, Saratoga emphasizes thorough due diligence and rigorous risk management to protect capital while seeking to maximize shareholder returns. The firm’s proactive portfolio management and consistent track record of dividend distributions position it as an appealing opportunity for institutional investors looking to diversify within the alternative investment landscape.

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