Arch Capital Group Ltd. (ACGL)vsHercules Capital, Inc. (HTGC)
ACGL
Arch Capital Group Ltd.
$88.34
-1.29%
FINANCIAL SERVICES · Cap: $32.03B
HTGC
Hercules Capital, Inc.
$15.28
-1.86%
FINANCIAL SERVICES · Cap: $2.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd. generates 3467% more annual revenue ($19.78B vs $554.52M). HTGC leads profitability with a 59.9% profit margin vs 24.6%. HTGC appears more attractively valued with a PEG of 0.53. ACGL earns a higher WallStSmart Score of 79/100 (B+).
ACGL
Strong Buy79
out of 100
Grade: B+
HTGC
Strong Buy68
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 94.6% YoY
Every $100 of equity generates 20 in profit
Keeps 25 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 60 of every $100 in revenue as profit
Strong operational efficiency at 84.0%
Growing faster than its price suggests
18.4% revenue growth
Areas to Watch
Revenue declined 3.3%
Distress zone — elevated risk
Elevated debt levels
Earnings declined 20.8%
Negative free cash flow — burning cash
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ACGL
The strongest argument for ACGL centers on P/E Ratio, Price/Book, EPS Growth. Profitability is solid with margins at 24.6% and operating margin at 25.3%. PEG of 1.06 suggests the stock is reasonably priced for its growth.
Bull Case : HTGC
The strongest argument for HTGC centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 59.9% and operating margin at 84.0%. Revenue growth of 18.4% demonstrates continued momentum.
Bear Case : ACGL
The primary concerns for ACGL are Revenue Growth, Altman Z-Score.
Bear Case : HTGC
The primary concerns for HTGC are Debt/Equity, EPS Growth, Free Cash Flow.
Key Dynamics to Monitor
ACGL profiles as a declining stock while HTGC is a growth play — different risk/reward profiles.
HTGC carries more volatility with a beta of 0.74 — expect wider price swings.
HTGC is growing revenue faster at 18.4% — sustainability is the question.
ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.
Bottom Line
ACGL scores higher overall (79/100 vs 68/100), backed by strong 24.6% 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.
Hercules Capital, Inc.
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
Hercules Capital Inc. (HTGC) is a prominent publicly traded business development company that specializes in offering customized debt and equity financing solutions primarily to venture growth-stage companies across sectors such as technology and life sciences. With a strong focus on innovation and rapid expansion, Hercules employs its extensive industry expertise to strategically invest in high-growth firms, thereby fostering scalability while maintaining a diversified portfolio that emphasizes credit quality and risk-adjusted returns. As a pivotal partner for entrepreneurial ventures, Hercules Capital is committed to driving sustainable value, making it an appealing investment opportunity for institutional investors seeking exposure to dynamic sectors.
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