Arch Capital Group Ltd. (ACGL)vsSLM Corp Pb Pref (SLMBP)
ACGL
Arch Capital Group Ltd.
$88.34
+0.58%
FINANCIAL SERVICES · Cap: $32.03B
SLMBP
SLM Corp Pb Pref
$74.35
-0.95%
FINANCIAL SERVICES · Cap: $4.83B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 1087% more annual revenue ($19.78B vs $1.67B). SLMBP leads profitability with a 44.9% profit margin vs 24.6%. ACGL trades at a lower P/E of 7.0x. ACGL earns a higher WallStSmart Score of 79/100 (B+).
ACGL
Strong Buy79
out of 100
Grade: B+
SLMBP
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
Earnings expanding 94.6% YoY
Every $100 of equity generates 20 in profit
Keeps 25 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Every $100 of equity generates 31 in profit
Keeps 45 of every $100 in revenue as profit
Strong operational efficiency at 70.1%
Areas to Watch
Revenue declined 3.3%
Distress zone — elevated risk
Premium valuation, high expectations priced in
2.5% revenue growth
Negative free cash flow — burning cash
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull 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 : SLMBP
The strongest argument for SLMBP centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 44.9% and operating margin at 70.1%.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, Altman Z-Score.
Bear Case : SLMBP
The primary concerns for SLMBP are P/E Ratio, Revenue Growth, Free Cash Flow. Debt-to-equity of 2.53 is elevated, increasing financial risk.
Key Dynamics to Monitor
ACGL profiles as a declining stock while SLMBP is a value play — different risk/reward profiles.
SLMBP carries more volatility with a beta of 0.99 — expect wider price swings.
SLMBP is growing revenue faster at 2.5% — 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.
SLM Corp Pb Pref
FINANCIAL SERVICES · CREDIT SERVICES · USA
SLM Corporation originates and provides private education loan services to students and their families to finance the cost of their education in the United States. The company is headquartered in Newark, Delaware.
Visit Website →Compare with Other INSURANCE - DIVERSIFIED Stocks
Want to dig deeper into these stocks?