WallStSmart

Arch Capital Group Ltd (ACGL)vsSWK Holdings Corp (SWKH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 52925% more annual revenue ($19.93B vs $37.58M). ACGL leads profitability with a 22.1% profit margin vs -6.7%. ACGL earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

81

out of 100

Grade: A-

Growth: 8.7Profit: 8.0Value: 7.0Quality: 6.5
Piotroski: 5/9

SWKH

Hold

43

out of 100

Grade: D

Growth: 4.7Profit: 3.5Value: 5.0Quality: 7.0
Piotroski: 5/9Altman Z: -13.01

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

EPS GrowthGrowth
38.8%8/10

Earnings expanding 38.8% YoY

SWKH3 strengths · Avg: 9.7/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

EPS GrowthGrowth
157.1%10/10

Earnings expanding 157.1% YoY

Debt/EquityHealth
0.139/10

Conservative balance sheet, low leverage

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

SWKH4 concerns · Avg: 2.3/10
Market CapQuality
$192.33M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-1.0%2/10

ROE of -1.0% — below average capital efficiency

Revenue GrowthGrowth
-27.8%2/10

Revenue declined 27.8%

Altman Z-ScoreHealth
-13.012/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull 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 : SWKH

The strongest argument for SWKH centers on Price/Book, EPS Growth, Debt/Equity.

Bear Case : ACGL

No major red flags identified for ACGL, but monitor valuation.

Bear Case : SWKH

The primary concerns for SWKH are Market Cap, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

ACGL profiles as a mature stock while SWKH is a turnaround play — different risk/reward profiles.

ACGL carries more volatility with a beta of 0.38 — expect wider price swings.

ACGL is growing revenue faster at 8.5% — 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 43/100), backed by strong 22.1% margins. Both earn "Exceptional 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.

SWK Holdings Corp

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

SWK Holdings Corporation, a specialized finance company, focuses on the healthcare sector. The company is headquartered in Dallas, Texas.

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