Arch Capital Group Ltd. (ACGL)vsStepstone Group Inc (STEP)
ACGL
Arch Capital Group Ltd.
$96.09
-0.11%
FINANCIAL SERVICES · Cap: $33.47B
STEP
Stepstone Group Inc
$48.92
-0.85%
FINANCIAL SERVICES · Cap: $6.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 858% more annual revenue ($19.23B vs $2.01B). ACGL leads profitability with a 24.4% profit margin vs -30.5%. ACGL earns a higher WallStSmart Score of 67/100 (B-).
ACGL
Strong Buy67
out of 100
Grade: B-
STEP
Avoid25
out of 100
Grade: F
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
Conservative balance sheet, low leverage
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
4.0% revenue growth
ROE of -55.9% — below average capital efficiency
Earnings declined 38.5%
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 : STEP
The strongest argument for STEP centers on Debt/Equity.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : STEP
The primary concerns for STEP are Revenue Growth, Return on Equity, EPS Growth.
Key Dynamics to Monitor
ACGL profiles as a declining stock while STEP is a turnaround play — different risk/reward profiles.
STEP carries more volatility with a beta of 1.28 — expect wider price swings.
STEP is growing revenue faster at 4.0% — sustainability is the question.
ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (67/100 vs 25/100), backed by strong 24.4% margins. Both earn "Strong Buy" and "Avoid" 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.
Stepstone Group Inc
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
Stepstone Group Inc. (STEP) is a leading global investment firm that specializes in private markets, delivering tailored investment solutions to institutional investors. The firm employs a strategic focus across various asset classes, including private equity, real estate, infrastructure, and private debt, leveraging its extensive network and deep sector expertise to uncover high-quality opportunities. With a commitment to disciplined asset allocation and rigorous due diligence, Stepstone combines the skills of a seasoned team with advanced technology, positioning itself to navigate the complexities of private markets and strive for sustainable, long-term value creation for clients.
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