Arch Capital Group Ltd (ACGL)vsStepstone Group Inc (STEP)
ACGL
Arch Capital Group Ltd
$92.72
-4.47%
FINANCIAL SERVICES · Cap: $34.58B
STEP
Stepstone Group Inc
$52.90
+3.54%
FINANCIAL SERVICES · Cap: $6.39B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd generates 1018% more annual revenue ($19.93B vs $1.78B). ACGL leads profitability with a 22.1% profit margin vs -30.7%. ACGL earns a higher WallStSmart Score of 81/100 (A-).
ACGL
Exceptional Buy81
out of 100
Grade: A-
STEP
Avoid33
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 22 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 29.5%
Earnings expanding 38.8% YoY
Revenue surging 73.0% year-over-year
Conservative balance sheet, low leverage
Areas to Watch
No major concerns identified
Weak financial health signals
ROE of -65.1% — below average capital efficiency
Earnings declined 38.5%
Distress zone — elevated risk
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 22.1% and operating margin at 29.5%. PEG of 1.06 suggests the stock is reasonably priced for its growth.
Bull Case : STEP
The strongest argument for STEP centers on Revenue Growth, Debt/Equity. Revenue growth of 73.0% demonstrates continued momentum.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : STEP
The primary concerns for STEP are Piotroski F-Score, Return on Equity, EPS Growth.
Key Dynamics to Monitor
ACGL profiles as a mature stock while STEP is a hypergrowth play — different risk/reward profiles.
STEP carries more volatility with a beta of 1.31 — expect wider price swings.
STEP is growing revenue faster at 73.0% — sustainability is the question.
ACGL generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (81/100 vs 33/100), backed by strong 22.1% margins. Both earn "Exceptional 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 premier global private markets investment firm, recognized for its expertise in providing customized investment solutions to institutional investors. Specializing in private equity, real estate, infrastructure, and private debt, the firm leverages a vast network and profound industry insights to identify and access high-quality investment opportunities. Committed to enhancing client portfolios through strategic asset allocation and meticulous due diligence, Stepstone is backed by a team of seasoned professionals and cutting-edge technology, enabling it to adeptly manage the intricacies of private markets and deliver sustainable long-term value.
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