WallStSmart

Arch Capital Group Ltd (ACGL)vsMonroe Capital Corp (MRCC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 52518% more annual revenue ($19.93B vs $37.88M). ACGL leads profitability with a 22.1% profit margin vs -13.5%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

81

out of 100

Grade: A-

Growth: 8.7Profit: 8.0Value: 7.0Quality: 6.5
Piotroski: 5/9

MRCC

Hold

39

out of 100

Grade: F

Growth: 4.7Profit: 5.0Value: 4.7Quality: 5.0

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

EPS GrowthGrowth
38.8%8/10

Earnings expanding 38.8% YoY

MRCC2 strengths · Avg: 10.0/10
Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Operating MarginProfitability
69.0%10/10

Strong operational efficiency at 69.0%

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

MRCC4 concerns · Avg: 2.8/10
PEG RatioValuation
2.054/10

Expensive relative to growth rate

Market CapQuality
$110.06M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-2.9%2/10

ROE of -2.9% — below average capital efficiency

Revenue GrowthGrowth
-41.8%2/10

Revenue declined 41.8%

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 22.1% and operating margin at 29.5%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : MRCC

The strongest argument for MRCC centers on Price/Book, Operating Margin.

Bear Case : ACGL

No major red flags identified for ACGL, but monitor valuation.

Bear Case : MRCC

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

Key Dynamics to Monitor

ACGL profiles as a mature stock while MRCC is a turnaround play — different risk/reward profiles.

MRCC carries more volatility with a beta of 0.85 — expect wider price swings.

ACGL is growing revenue faster at 8.5% — sustainability is the question.

ACGL generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (81/100 vs 39/100), backed by strong 22.1% margins. Both earn "Exceptional Buy" and "Hold" 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.

Monroe Capital Corp

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Monroe Capital Corporation is a business development company specializing in customized financing solutions in senior, unitranche, and junior secured debt and, to a lesser extent, unsecured debt and equity, including equity joint ventures in preferred and common stocks and warrants.

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