WallStSmart

Arch Capital Group Ltd. (ACGL)vsHorizon Technology Finance (HRZN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 19911% more annual revenue ($19.23B vs $96.11M). ACGL leads profitability with a 24.4% profit margin vs 5.3%. 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

HRZN

Buy

58

out of 100

Grade: C

Growth: 7.3Profit: 6.0Value: 5.7Quality: 5.8
Piotroski: 4/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
7.6x10/10

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

HRZN4 strengths · Avg: 9.5/10
Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Operating MarginProfitability
79.4%10/10

Strong operational efficiency at 79.4%

EPS GrowthGrowth
241.7%10/10

Earnings expanding 241.7% YoY

P/E RatioValuation
12.5x8/10

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

HRZN4 concerns · Avg: 3.5/10
PEG RatioValuation
1.914/10

Expensive relative to growth rate

Revenue GrowthGrowth
2.1%4/10

2.1% revenue growth

Market CapQuality
$311.04M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

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 : HRZN

The strongest argument for HRZN centers on Price/Book, Operating Margin, EPS Growth.

Bear Case : ACGL

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

Bear Case : HRZN

The primary concerns for HRZN are PEG Ratio, Revenue Growth, Market Cap.

Key Dynamics to Monitor

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

HRZN carries more volatility with a beta of 0.96 — expect wider price swings.

HRZN is growing revenue faster at 2.1% — 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 58/100), 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.

Horizon Technology Finance

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Horizon Technology Finance (HRZN) is a leading specialty finance company dedicated to providing structured debt solutions to growth-stage, venture capital-backed businesses across the technology, life sciences, and sustainability sectors. The firm offers tailored financing options, encompassing both debt capital and equity co-investments, which empower its clients to enhance growth and foster innovation. HRZN's disciplined investment strategy is designed to identify and leverage high-quality opportunities that yield strong risk-adjusted returns, solidifying its position as a key player in advancing technology and sustainability within an ever-evolving market.

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