WallStSmart

Arch Capital Group Ltd. (ACGL)vsKayne Anderson BDC, Inc. (KBDC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ACGL leads profitability with a 24.6% profit margin vs 0.0%. ACGL trades at a lower P/E of 7.2x. ACGL earns a higher WallStSmart Score of 79/100 (B+).

ACGL

Strong Buy

79

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

KBDC

Avoid

31

out of 100

Grade: F

Growth: 6.0Profit: 4.5Value: 6.7Quality: 4.8
Piotroski: 3/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
94.6%10/10

Earnings expanding 94.6% YoY

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

Profit MarginProfitability
24.6%9/10

Keeps 25 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

KBDC1 strengths · Avg: 10.0/10
P/E RatioValuation
11.3x10/10

Attractively priced relative to earnings

Areas to Watch

ACGL2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

KBDC4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$963.40M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull 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 : KBDC

The strongest argument for KBDC centers on P/E Ratio.

Bear Case : ACGL

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

Bear Case : KBDC

The primary concerns for KBDC are Revenue Growth, EPS Growth, Market Cap.

Key Dynamics to Monitor

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

KBDC is growing revenue faster at 0.0% — sustainability is the question.

ACGL generates stronger free cash flow (1.2B), providing more financial flexibility.

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

Bottom Line

ACGL scores higher overall (79/100 vs 31/100), backed by strong 24.6% margins. Both earn "Strong Buy" and "Avoid" 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.

Kayne Anderson BDC, Inc.

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Kayne Anderson BDC, Inc. is a prominent business development company focused on providing adaptable financing solutions to middle-market businesses across diverse sectors. The firm aims to achieve attractive risk-adjusted returns by making strategic investments in secured debt and equity of companies exhibiting strong operational fundamentals. Leveraging its extensive industry knowledge and robust networks, Kayne Anderson BDC not only supports the growth of its portfolio companies but also delivers consistent income and capital appreciation to its investors. This strategic approach positions the company as a compelling investment opportunity for institutional investors looking to gain exposure to the resilient middle-market landscape.

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