Arch Capital Group Ltd. (ACGL)vsCapital Southwest Corporation (CSWC)
ACGL
Arch Capital Group Ltd.
$106.36
+2.33%
FINANCIAL SERVICES · Cap: $34.24B
CSWC
Capital Southwest Corporation
$23.17
-1.03%
FINANCIAL SERVICES · Cap: $1.48B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 8008% more annual revenue ($19.23B vs $237.21M). CSWC leads profitability with a 46.7% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 67/100 (B-).
ACGL
Strong Buy67
out of 100
Grade: B-
CSWC
Buy53
out of 100
Grade: C-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Strong operational efficiency at 26.6%
Generating 1.3B in free cash flow
Reasonable price relative to book value
Keeps 47 of every $100 in revenue as profit
Strong operational efficiency at 87.6%
Attractively priced relative to earnings
Areas to Watch
Revenue declined 10.5%
Earnings declined 7.1%
Distress zone — elevated risk
Smaller company, higher risk/reward
Expensive relative to growth rate
Earnings declined 17.8%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : ACGL
The strongest argument for ACGL centers on P/E Ratio, Profit Margin, Debt/Equity. 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 : CSWC
The strongest argument for CSWC centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 46.7% and operating margin at 87.6%.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : CSWC
The primary concerns for CSWC are Market Cap, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
ACGL profiles as a declining stock while CSWC is a mature play — different risk/reward profiles.
CSWC carries more volatility with a beta of 0.75 — expect wider price swings.
CSWC is growing revenue faster at 9.1% — 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 53/100), backed by strong 24.4% 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.
Capital Southwest Corporation
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
Capital Southwest Corporation (CSWC) is a leading publicly traded business development company that specializes in providing customized financing solutions for middle-market enterprises. With a diversified investment portfolio that spans debt and equity across critical sectors including healthcare, technology, and manufacturing, CSWC aims to deliver attractive risk-adjusted returns to its investors. The company leverages its extensive industry knowledge and strategic networks to not only foster operational efficiencies within its portfolio but also drive sustainable growth, positioning itself as a vital partner in the dynamic business environment.
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