WallStSmart

Arch Capital Group Ltd. (ACGL)vsCapital Southwest Corporation (CSWC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 8421% more annual revenue ($19.78B vs $232.10M). CSWC leads profitability with a 48.7% profit margin vs 24.6%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 79/100 (B+).

ACGL

Strong Buy

79

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

CSWC

Buy

57

out of 100

Grade: C

Growth: 6.7Profit: 8.0Value: 5.0Quality: 5.0
Piotroski: 4/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

Profit MarginProfitability
24.6%9/10

Keeps 25 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

CSWC5 strengths · Avg: 9.2/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
48.7%10/10

Keeps 49 of every $100 in revenue as profit

Operating MarginProfitability
75.8%10/10

Strong operational efficiency at 75.8%

P/E RatioValuation
12.2x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
28.7%8/10

Earnings expanding 28.7% YoY

Areas to Watch

ACGL2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

CSWC4 concerns · Avg: 2.5/10
Market CapQuality
$1.44B3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.123/10

Elevated debt levels

PEG RatioValuation
12.542/10

Expensive relative to growth rate

Revenue GrowthGrowth
-4.0%2/10

Revenue declined 4.0%

Comparative Analysis Report

WallStSmart Research

Bull 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 : CSWC

The strongest argument for CSWC centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 48.7% and operating margin at 75.8%.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth, Altman Z-Score.

Bear Case : CSWC

The primary concerns for CSWC are Market Cap, Debt/Equity, PEG Ratio.

Key Dynamics to Monitor

CSWC carries more volatility with a beta of 0.75 — expect wider price swings.

ACGL is growing revenue faster at -3.3% — sustainability is the question.

ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.

Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ACGL scores higher overall (79/100 vs 57/100), 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.

Capital Southwest Corporation

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Capital Southwest Corporation (CSWC) is a leading publicly traded business development company that provides customized financing solutions to middle-market businesses. The firm strategically invests in debt and equity across dynamic sectors, including healthcare, technology, and manufacturing, with the objective of generating strong risk-adjusted returns for its investors. By leveraging its deep industry relationships and proficiency in private equity, CSWC enhances operational performance and cultivates long-term value in its portfolio, solidifying its role as a vital partner in the growth of its investee companies.

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