WallStSmart

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

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Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 3212% more annual revenue ($18.78B vs $566.90M). ACGL leads profitability with a 23.3% profit margin vs 7.8%. ACGL trades at a lower P/E of 8.8x. 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: 6.5
Piotroski: 6/9Altman Z: 1.48

GCMG

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 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: 8.7/10
P/E RatioValuation
8.8x10/10

Attractively priced relative to earnings

Profit MarginProfitability
23.3%9/10

Keeps 23 of every $100 in revenue as profit

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
26.8%8/10

Strong operational efficiency at 26.8%

Free Cash FlowQuality
$1.75B8/10

Generating 1.7B in free cash flow

GCMG3 strengths · Avg: 9.3/10
Return on EquityProfitability
175.6%10/10

Every $100 of equity generates 176 in profit

EPS GrowthGrowth
136.3%10/10

Earnings expanding 136.3% YoY

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

Areas to Watch

ACGL3 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-8.9%2/10

Revenue declined 8.9%

EPS GrowthGrowth
-15.7%2/10

Earnings declined 15.7%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

GCMG4 concerns · Avg: 3.5/10
P/E RatioValuation
25.9x4/10

Moderate valuation

Altman Z-ScoreHealth
1.754/10

Distress zone — elevated risk

Market CapQuality
$822.15M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
7.8%3/10

7.8% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Profit Margin, Debt/Equity. Profitability is solid with margins at 23.3% and operating margin at 26.8%. 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, Operating Margin. Revenue growth of 11.8% demonstrates continued momentum.

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 P/E Ratio, Altman Z-Score, Market Cap. Debt-to-equity of 16.30 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 0.92 — expect wider price swings.

GCMG is growing revenue faster at 11.8% — sustainability is the question.

ACGL generates stronger free cash flow (1.7B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (67/100 vs 62/100), backed by strong 23.3% 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.

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