WallStSmart

Arch Capital Group Ltd. (ACGL)vsGoldman Sachs BDC Inc (GSBD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 5436% more annual revenue ($19.23B vs $347.42M). ACGL leads profitability with a 24.4% profit margin vs 21.3%. 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: 6.8
Piotroski: 6/9Altman Z: 1.48

GSBD

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 7.0Value: 5.7Quality: 4.8
Piotroski: 4/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.2/10
P/E RatioValuation
7.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

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%

GSBD4 strengths · Avg: 9.3/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Operating MarginProfitability
70.8%10/10

Strong operational efficiency at 70.8%

Profit MarginProfitability
21.3%9/10

Keeps 21 of every $100 in revenue as profit

P/E RatioValuation
13.4x8/10

Attractively priced relative to earnings

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

GSBD4 concerns · Avg: 3.3/10
PEG RatioValuation
2.154/10

Expensive relative to growth rate

Market CapQuality
$969.22M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.4%3/10

ROE of 5.4% — below average capital efficiency

Debt/EquityHealth
1.363/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, Return on Equity. 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 : GSBD

The strongest argument for GSBD centers on Price/Book, Operating Margin, Profit Margin. Profitability is solid with margins at 21.3% and operating margin at 70.8%.

Bear Case : ACGL

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

Bear Case : GSBD

The primary concerns for GSBD are PEG Ratio, Market Cap, Return on Equity.

Key Dynamics to Monitor

GSBD carries more volatility with a beta of 0.63 — expect wider price swings.

ACGL is growing revenue faster at -10.5% — sustainability is the question.

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

Monitor INSURANCE - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ACGL scores higher overall (67/100 vs 55/100), 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.

Goldman Sachs BDC Inc

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Goldman Sachs BDC Inc. (GSBD) is a closed-end management investment company focused on providing tailored debt and equity solutions to middle-market enterprises across the United States. Capitalizing on the extensive resources and expertise of Goldman Sachs, the firm aims to enhance shareholder value through a diversified portfolio that strategically balances risk and return. Committed to generating stable income through a disciplined distribution policy, GSBD actively seeks growth opportunities while emphasizing a robust risk management framework and fostering strategic industry partnerships to bolster its overall investment strategy.

Visit Website →

Want to dig deeper into these stocks?