WallStSmart

Arch Capital Group Ltd. (ACGL)vsGCM Grosvenor Inc (GCMG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 3468% more annual revenue ($19.78B vs $554.36M). ACGL leads profitability with a 24.6% profit margin vs 8.2%. ACGL trades at a lower P/E of 7.3x. 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

GCMG

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 8.5Value: 5.3Quality: 4.8
Piotroski: 3/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.3x10/10

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

GCMG3 strengths · Avg: 10.0/10
Return on EquityProfitability
76.6%10/10

Every $100 of equity generates 77 in profit

Operating MarginProfitability
31.0%10/10

Strong operational efficiency at 31.0%

EPS GrowthGrowth
104.4%10/10

Earnings expanding 104.4% YoY

Areas to Watch

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

Revenue declined 3.3%

GCMG4 concerns · Avg: 3.0/10
P/E RatioValuation
26.9x4/10

Moderate valuation

Market CapQuality
$670.24M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
25.2x2/10

Trading at 25.2x book value

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 : GCMG

The strongest argument for GCMG centers on Return on Equity, Operating Margin, EPS Growth.

Bear Case : ACGL

The primary concerns for ACGL are Revenue Growth.

Bear Case : GCMG

The primary concerns for GCMG are P/E Ratio, Market Cap, Piotroski F-Score.

Key Dynamics to Monitor

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

GCMG carries more volatility with a beta of 0.88 — expect wider price swings.

GCMG is growing revenue faster at 6.8% — 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 62/100), 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.

GCM Grosvenor Inc

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

GCM Grosvenor Inc is a prominent global alternative investment firm renowned for its extensive asset management and advisory capabilities across diverse asset classes, including private equity, infrastructure, and real estate. With a steadfast commitment to exceptional client service, the firm employs innovative investment strategies underpinned by deep industry insights, catering to a broad spectrum of clients from institutional investors to high-net-worth individuals. GCM Grosvenor emphasizes sustainable and responsible investing, striving to achieve attractive risk-adjusted returns while positioning itself as a forward-thinking leader in the alternative investment sector, effectively capitalizing on emerging market opportunities.

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