WallStSmart

Arch Capital Group Ltd. (ACGL)vsOaktree Specialty Lending Corp (OCSL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 6352% more annual revenue ($19.23B vs $298.07M). ACGL leads profitability with a 24.4% profit margin vs 16.7%. OCSL appears more attractively valued with a PEG of 0.93. 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

OCSL

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 7.0Value: 6.3Quality: 5.5
Piotroski: 4/9Altman Z: 0.31

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.2/10
P/E RatioValuation
7.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

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%

OCSL3 strengths · Avg: 9.3/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Operating MarginProfitability
85.2%10/10

Strong operational efficiency at 85.2%

PEG RatioValuation
0.938/10

Growing faster than its price suggests

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

OCSL4 concerns · Avg: 2.8/10
Market CapQuality
$1.02B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
3.6%3/10

ROE of 3.6% — below average capital efficiency

Debt/EquityHealth
1.043/10

Elevated debt levels

Revenue GrowthGrowth
-9.3%2/10

Revenue declined 9.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : ACGL

The strongest argument for ACGL centers on P/E Ratio, Price/Book, Return on Equity. 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 : OCSL

The strongest argument for OCSL centers on Price/Book, Operating Margin, PEG Ratio. Profitability is solid with margins at 16.7% and operating margin at 85.2%. PEG of 0.93 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

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

Bear Case : OCSL

The primary concerns for OCSL are Market Cap, Return on Equity, Debt/Equity.

Key Dynamics to Monitor

OCSL carries more volatility with a beta of 0.55 — expect wider price swings.

OCSL is growing revenue faster at -9.3% — sustainability is the question.

ACGL generates stronger free cash flow (2.5B), providing more financial flexibility.

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

Bottom Line

ACGL scores higher overall (67/100 vs 57/100), 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.

Oaktree Specialty Lending Corp

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Oaktree Specialty Lending Corp (OCSL) is a publicly traded business development company that specializes in providing customized financing solutions for middle-market enterprises. Backed by the extensive expertise of Oaktree Capital Management, OCSL employs a disciplined investment strategy centered on securing attractive risk-adjusted returns primarily through secured debt instruments. The company boasts a diversified portfolio spanning multiple sectors, with a strong emphasis on credit quality and strategic risk management practices. This positions OCSL as an appealing option for institutional investors seeking reliable income and stability in the dynamic specialty lending landscape.

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