WallStSmart

Arch Capital Group Ltd (ACGL)vsGladstone Investment Corporation (GAIN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 19547% more annual revenue ($19.93B vs $101.43M). GAIN leads profitability with a 118.5% profit margin vs 22.1%. ACGL appears more attractively valued with a PEG of 1.06. 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

GAIN

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 7.5Value: 5.7Quality: 4.3
Piotroski: 2/9

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

GAIN6 strengths · Avg: 9.5/10
P/E RatioValuation
5.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
118.5%10/10

Keeps 119 of every $100 in revenue as profit

EPS GrowthGrowth
58.5%10/10

Earnings expanding 58.5% YoY

Return on EquityProfitability
22.2%9/10

Every $100 of equity generates 22 in profit

Revenue GrowthGrowth
17.3%8/10

17.3% revenue growth

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

GAIN4 concerns · Avg: 2.5/10
Market CapQuality
$617.24M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
5.412/10

Expensive relative to growth rate

Free Cash FlowQuality
$-135.66M2/10

Negative free cash flow — burning cash

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 : GAIN

The strongest argument for GAIN centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 118.5% and operating margin at 15.8%. Revenue growth of 17.3% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : GAIN

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

Key Dynamics to Monitor

ACGL profiles as a mature stock while GAIN is a growth play — different risk/reward profiles.

GAIN carries more volatility with a beta of 0.76 — expect wider price swings.

GAIN is growing revenue faster at 17.3% — 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 65/100), backed by strong 22.1% margins. Both earn "Exceptional 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.

Gladstone Investment Corporation

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Gladstone Investment Corporation (GAIN) is a publicly traded business development company that specializes in providing customized financing solutions to small and mid-sized private enterprises through a mix of debt and equity investments. With a diversified portfolio spanning various sectors, GAIN is dedicated to delivering both stable income and capital appreciation to its shareholders. As part of the esteemed Gladstone family of funds, the company emphasizes rigorous risk management and alignment with investor interests, supported by a seasoned management team and robust industry connections, positioning it as a significant player in the alternative investment landscape.

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