WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 3379% more annual revenue ($19.23B vs $552.85M). ACGL leads profitability with a 24.4% profit margin vs 9.1%. ACGL trades at a lower P/E of 7.9x. ACGL earns a higher WallStSmart Score of 67/100 (B-).

ACGL

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 8.0Value: 7.0Quality: 6.8
Piotroski: 6/9Altman Z: 1.48

GCMG

Buy

54

out of 100

Grade: C-

Growth: 6.0Profit: 8.0Value: 5.3Quality: 5.0
Piotroski: 3/9Altman Z: 1.75

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
7.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

Free Cash FlowQuality
$2.49B8/10

Generating 2.5B in free cash flow

GCMG2 strengths · Avg: 10.0/10
Return on EquityProfitability
197.6%10/10

Every $100 of equity generates 198 in profit

EPS GrowthGrowth
104.4%10/10

Earnings expanding 104.4% YoY

Areas to Watch

ACGL3 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-10.5%2/10

Revenue declined 10.5%

EPS GrowthGrowth
-7.1%2/10

Earnings declined 7.1%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

GCMG4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.754/10

Distress zone — elevated risk

Market CapQuality
$753.58M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
32.1x2/10

Trading at 32.1x book value

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 24.4% and operating margin at 26.6%. 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, EPS Growth.

Bear Case : ACGL

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

Bear Case : GCMG

The primary concerns for GCMG are Altman Z-Score, Market Cap, Piotroski F-Score. Debt-to-equity of 16.26 is elevated, increasing financial risk.

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 0.84 — expect wider price swings.

GCMG is growing revenue faster at -1.2% — sustainability is the question.

ACGL generates stronger free cash flow (2.5B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (67/100 vs 54/100), backed by strong 24.4% 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 leading global alternative investment firm, recognized for its robust asset management and advisory services across a multifaceted range of asset classes, including private equity, infrastructure, and real estate. With a steadfast commitment to superior client service, the firm employs innovative investment strategies informed by deep market insights, effectively catering to a diverse clientele of institutional investors and high-net-worth individuals. GCM Grosvenor prioritizes sustainable and responsible investing, seeking to generate attractive risk-adjusted returns while strategically targeting emerging market opportunities to capitalize on growth in the dynamic alternative investment sector.

Visit Website →

Want to dig deeper into these stocks?