WallStSmart

Arch Capital Group Ltd. (ACGL)vsGladstone Capital Corporation (GLAD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 19339% more annual revenue ($19.23B vs $98.93M). GLAD leads profitability with a 48.7% profit margin vs 24.4%. ACGL appears more attractively valued with a PEG of 1.06. 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: 6.0
Piotroski: 6/9Altman Z: 1.48

GLAD

Strong Buy

66

out of 100

Grade: B-

Growth: 8.7Profit: 8.0Value: 6.3Quality: 4.5
Piotroski: 4/9Altman Z: 1.19

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
7.7x10/10

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
$1.31B8/10

Generating 1.3B in free cash flow

GLAD5 strengths · Avg: 10.0/10
P/E RatioValuation
9.1x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
48.7%10/10

Keeps 49 of every $100 in revenue as profit

Operating MarginProfitability
74.3%10/10

Strong operational efficiency at 74.3%

EPS GrowthGrowth
68.8%10/10

Earnings expanding 68.8% 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

GLAD4 concerns · Avg: 2.8/10
PEG RatioValuation
2.314/10

Expensive relative to growth rate

Market CapQuality
$439.89M3/10

Smaller company, higher risk/reward

Free Cash FlowQuality
$-85.05M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.192/10

Distress zone — elevated risk

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 : GLAD

The strongest argument for GLAD centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 48.7% and operating margin at 74.3%. Revenue growth of 13.1% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : GLAD

The primary concerns for GLAD are PEG Ratio, Market Cap, Free Cash Flow.

Key Dynamics to Monitor

ACGL profiles as a declining stock while GLAD is a mature play — different risk/reward profiles.

GLAD carries more volatility with a beta of 0.93 — expect wider price swings.

GLAD is growing revenue faster at 13.1% — sustainability is the question.

ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (67/100 vs 66/100), backed by strong 24.4% margins. Both earn "Strong Buy" and "Strong 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 Capital Corporation

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Gladstone Capital Corporation (GLAD) is a leading publicly traded business development company that focuses on delivering tailored debt and equity financing to lower middle-market enterprises, facilitating their growth and strategic initiatives. Committed to a disciplined investment strategy centered on capital preservation, GLAD seeks to provide investors with attractive risk-adjusted returns through a diverse array of financing options, including term loans and equity investments. With a seasoned management team equipped with deep industry expertise, Gladstone Capital is strategically positioned to adapt to evolving market conditions, fostering enduring partnerships with portfolio companies and driving sustainable value creation.

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