Arch Capital Group Ltd (ACGL)vsProspect Capital Corporation (PSEC)
ACGL
Arch Capital Group Ltd
$94.46
+1.88%
FINANCIAL SERVICES · Cap: $34.58B
PSEC
Prospect Capital Corporation
$2.71
+0.74%
FINANCIAL SERVICES · Cap: $1.31B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd generates 2869% more annual revenue ($19.93B vs $671.29M). ACGL leads profitability with a 22.1% profit margin vs -34.9%. ACGL appears more attractively valued with a PEG of 1.06. ACGL earns a higher WallStSmart Score of 81/100 (A-).
ACGL
Exceptional Buy81
out of 100
Grade: A-
PSEC
Hold45
out of 100
Grade: D+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 22 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 29.5%
Earnings expanding 38.8% YoY
Reasonable price relative to book value
Strong operational efficiency at 70.3%
Areas to Watch
No major concerns identified
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of -4.8% — below average capital efficiency
Revenue declined 5.1%
Comparative Analysis Report
WallStSmart ResearchBull 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 : PSEC
The strongest argument for PSEC centers on Price/Book, Operating Margin.
Bear Case : ACGL
No major red flags identified for ACGL, but monitor valuation.
Bear Case : PSEC
The primary concerns for PSEC are PEG Ratio, Market Cap, Return on Equity.
Key Dynamics to Monitor
ACGL profiles as a mature stock while PSEC is a turnaround play — different risk/reward profiles.
PSEC carries more volatility with a beta of 0.83 — 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 45/100), 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.
Prospect Capital Corporation
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
Prospect Capital Corporation (PSEC) is a prominent publicly traded business development company focused on delivering flexible financing solutions to middle-market enterprises. The firm maintains a diversified portfolio comprising both debt and equity investments, strategically targeting growth-oriented businesses across a variety of sectors. With a commitment to generating attractive, risk-adjusted returns for shareholders, PSEC emphasizes sustainable investment practices and social responsibility, positioning itself as a crucial partner in fostering the growth of its portfolio companies while aligning with the interests of socially-conscious investors.
Compare with Other INSURANCE - DIVERSIFIED Stocks
Want to dig deeper into these stocks?