WallStSmart

Arch Capital Group Ltd. (ACGL)vsPennantPark Floating Rate Capital Ltd (PFLT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 6994% more annual revenue ($19.23B vs $271.11M). ACGL leads profitability with a 24.4% profit margin vs 18.5%. PFLT appears more attractively valued with a PEG of 0.26. 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: 6.0
Piotroski: 6/9Altman Z: 1.48

PFLT

Buy

58

out of 100

Grade: C

Growth: 5.3Profit: 7.0Value: 7.7Quality: 5.8
Piotroski: 2/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
7.7x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

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%

Free Cash FlowQuality
$1.31B8/10

Generating 1.3B in free cash flow

PFLT4 strengths · Avg: 9.5/10
PEG RatioValuation
0.2610/10

Growing faster than its price suggests

Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Operating MarginProfitability
77.1%10/10

Strong operational efficiency at 77.1%

P/E RatioValuation
13.9x8/10

Attractively priced relative to earnings

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

PFLT4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.1%4/10

4.1% revenue growth

Market CapQuality
$716.35M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
4.9%3/10

ROE of 4.9% — below average capital efficiency

Debt/EquityHealth
1.553/10

Elevated debt levels

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 24.4% and operating margin at 26.6%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : PFLT

The strongest argument for PFLT centers on PEG Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 18.5% and operating margin at 77.1%. PEG of 0.26 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 : PFLT

The primary concerns for PFLT are Revenue Growth, Market Cap, Return on Equity. Debt-to-equity of 1.55 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

PFLT carries more volatility with a beta of 0.77 — expect wider price swings.

PFLT is growing revenue faster at 4.1% — sustainability is the question.

ACGL generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

ACGL scores higher overall (67/100 vs 58/100), 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.

PennantPark Floating Rate Capital Ltd

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

PennantPark Floating Rate Capital Ltd (PFLT) is a specialized business development company that offers flexible financing solutions, primarily through floating rate loans to middle-market companies. The firm is dedicated to capital preservation while delivering consistent income and attractive risk-adjusted returns through a diversified portfolio of debt instruments. With an experienced management team and strong strategic partnerships, PFLT is strategically positioned to adapt to market changes and capitalize on growth opportunities in the middle-market lending sector, making it a compelling choice for institutional investors prioritizing stability and yield.

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