WallStSmart

Arch Capital Group Ltd. (ACGL)vsFidus Investment Corp (FDUS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 11750% more annual revenue ($19.78B vs $166.90M). FDUS leads profitability with a 49.5% 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

FDUS

Buy

61

out of 100

Grade: C+

Growth: 7.3Profit: 8.0Value: 5.7Quality: 5.3
Piotroski: 2/9

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

FDUS5 strengths · Avg: 10.0/10
P/E RatioValuation
8.1x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Profit MarginProfitability
49.5%10/10

Keeps 50 of every $100 in revenue as profit

Operating MarginProfitability
72.5%10/10

Strong operational efficiency at 72.5%

Revenue GrowthGrowth
30.2%10/10

Revenue surging 30.2% year-over-year

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

FDUS4 concerns · Avg: 2.5/10
Market CapQuality
$696.46M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.522/10

Expensive relative to growth rate

EPS GrowthGrowth
-9.2%2/10

Earnings declined 9.2%

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 : FDUS

The strongest argument for FDUS centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 49.5% and operating margin at 72.5%. Revenue growth of 30.2% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : FDUS

The primary concerns for FDUS are Market Cap, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

ACGL profiles as a declining stock while FDUS is a growth play — different risk/reward profiles.

FDUS carries more volatility with a beta of 0.73 — expect wider price swings.

FDUS is growing revenue faster at 30.2% — sustainability is the question.

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

Bottom Line

ACGL scores higher overall (79/100 vs 61/100), 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.

Fidus Investment Corp

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Fidus Investment Corp (FDUS) is a publicly-traded business development company specializing in tailored debt and equity investment solutions for lower middle-market enterprises across various sectors. Driven by a disciplined investment strategy, FDUS aims to generate high current income and capital appreciation while maintaining a strong emphasis on credit quality and proactive portfolio management. As a regulated investment company, it emphasizes transparency and compliance, establishing itself as a trusted partner for growth-oriented businesses. With a strategic focus on delivering consistent returns, FDUS presents institutional investors with an attractive opportunity to enhance yield in today’s competitive market.

Visit Website →

Want to dig deeper into these stocks?