WallStSmart

Arch Capital Group Ltd. (ACGL)vsChicago Atlantic BDC, Inc. (LIEN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 33374% more annual revenue ($19.78B vs $59.08M). LIEN leads profitability with a 57.9% profit margin vs 24.6%. LIEN trades at a lower P/E of 6.5x. 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

LIEN

Strong Buy

68

out of 100

Grade: B-

Growth: 8.7Profit: 8.0Value: 6.7Quality: 6.0
Piotroski: 3/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

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

LIEN6 strengths · Avg: 9.8/10
P/E RatioValuation
6.5x10/10

Attractively priced relative to earnings

Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Profit MarginProfitability
57.9%10/10

Keeps 58 of every $100 in revenue as profit

Operating MarginProfitability
65.8%10/10

Strong operational efficiency at 65.8%

Revenue GrowthGrowth
40.1%10/10

Revenue surging 40.1% year-over-year

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

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

LIEN3 concerns · Avg: 2.7/10
Market CapQuality
$223.41M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-20.83M2/10

Negative free cash flow — burning cash

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 : LIEN

The strongest argument for LIEN centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 57.9% and operating margin at 65.8%. Revenue growth of 40.1% demonstrates continued momentum.

Bear Case : ACGL

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

Bear Case : LIEN

The primary concerns for LIEN are Market Cap, Piotroski F-Score, Free Cash Flow.

Key Dynamics to Monitor

ACGL profiles as a declining stock while LIEN is a growth play — different risk/reward profiles.

ACGL carries more volatility with a beta of 0.31 — expect wider price swings.

LIEN is growing revenue faster at 40.1% — 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.

Chicago Atlantic BDC, Inc.

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Silver Spike Investment Corp. The company is headquartered in New York, New York.

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