WallStSmart

Arch Capital Group Ltd. (ACGL)vsSLM Corp (SLM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 1087% more annual revenue ($19.78B vs $1.67B). SLM leads profitability with a 44.9% profit margin vs 24.6%. SLM appears more attractively valued with a PEG of 0.58. 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

SLM

Strong Buy

78

out of 100

Grade: B+

Growth: 5.3Profit: 8.5Value: 7.7Quality: 5.5
Piotroski: 6/9Altman Z: -0.14

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

SLM6 strengths · Avg: 9.3/10
P/E RatioValuation
6.2x10/10

Attractively priced relative to earnings

Return on EquityProfitability
30.7%10/10

Every $100 of equity generates 31 in profit

Profit MarginProfitability
44.9%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
70.1%10/10

Strong operational efficiency at 70.1%

PEG RatioValuation
0.588/10

Growing faster than its price suggests

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

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

SLM4 concerns · Avg: 2.3/10
Revenue GrowthGrowth
2.5%4/10

2.5% revenue growth

Free Cash FlowQuality
$-75.96M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.142/10

Distress zone — elevated risk

Debt/EquityHealth
2.531/10

Elevated debt levels

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 : SLM

The strongest argument for SLM centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 44.9% and operating margin at 70.1%. PEG of 0.58 suggests the stock is reasonably priced for its growth.

Bear Case : ACGL

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

Bear Case : SLM

The primary concerns for SLM are Revenue Growth, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.53 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

SLM carries more volatility with a beta of 0.99 — expect wider price swings.

SLM is growing revenue faster at 2.5% — 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 78/100), 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.

SLM Corp

FINANCIAL SERVICES · CREDIT SERVICES · USA

SLM Corporation originates and provides private education loan services to students and their families to finance the cost of their education in the United States. The company is headquartered in Newark, Delaware.

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