WallStSmart

Arch Capital Group Ltd (ACGL)vsFS KKR Capital Corp (FSK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 1202% more annual revenue ($19.78B vs $1.52B). ACGL leads profitability with a 24.6% profit margin vs 0.7%. 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: 6.5
Piotroski: 5/9

FSK

Buy

55

out of 100

Grade: C-

Growth: 7.3Profit: 6.0Value: 3.0Quality: 5.0
Piotroski: 6/9Altman Z: 0.50

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 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

FSK3 strengths · Avg: 9.3/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Operating MarginProfitability
75.6%10/10

Strong operational efficiency at 75.6%

EPS GrowthGrowth
33.8%8/10

Earnings expanding 33.8% YoY

Areas to Watch

ACGL1 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

FSK4 concerns · Avg: 2.8/10
Return on EquityProfitability
0.2%3/10

ROE of 0.2% — below average capital efficiency

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

Debt/EquityHealth
1.193/10

Elevated debt levels

PEG RatioValuation
3.272/10

Expensive relative to growth rate

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 : FSK

The strongest argument for FSK centers on Price/Book, Operating Margin, EPS Growth.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth.

Bear Case : FSK

The primary concerns for FSK are Return on Equity, Profit Margin, Debt/Equity. A P/E of 290.5x leaves little room for execution misses. Thin 0.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

ACGL profiles as a declining stock while FSK is a value play — different risk/reward profiles.

FSK carries more volatility with a beta of 0.91 — 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.

Bottom Line

ACGL scores higher overall (79/100 vs 55/100), 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.

FS KKR Capital Corp

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

FS KKR Capital Corp (FSK) is a leading diversified closed-end management investment company that focuses on providing customized financial solutions to middle-market enterprises. Backed by its strategic relationship with KKR, a globally recognized investment firm, FSK has access to a diverse array of investment opportunities, including senior and subordinated debt as well as equity investments. The company prioritizes yield generation and capital preservation through disciplined credit underwriting and robust portfolio management practices, aiming for attractive risk-adjusted returns. With a proven track record of successfully deploying capital throughout varying economic cycles, FSK is well-positioned to adapt to changing market conditions and leverage growth opportunities.

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