Arch Capital Group Ltd (ACGL)vsSLM Corp (SLM)
ACGL
Arch Capital Group Ltd
$94.46
+1.88%
FINANCIAL SERVICES · Cap: $34.58B
SLM
SLM Corp
$22.69
-1.69%
FINANCIAL SERVICES · Cap: $4.34B
Smart Verdict
WallStSmart Research — data-driven comparison
Arch Capital Group Ltd generates 1097% more annual revenue ($19.93B vs $1.67B). SLM leads profitability with a 44.9% profit margin vs 22.1%. SLM appears more attractively valued with a PEG of 0.58. ACGL earns a higher WallStSmart Score of 81/100 (A-).
ACGL
Exceptional Buy81
out of 100
Grade: A-
SLM
Strong Buy76
out of 100
Grade: B+
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
Attractively priced relative to earnings
Every $100 of equity generates 31 in profit
Keeps 45 of every $100 in revenue as profit
Strong operational efficiency at 70.1%
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
No major concerns identified
2.5% revenue growth
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
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 : 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
No major red flags identified for ACGL, but monitor valuation.
Bear Case : SLM
The primary concerns for SLM are Revenue Growth, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.39 is elevated, increasing financial risk.
Key Dynamics to Monitor
ACGL profiles as a mature stock while SLM is a value play — different risk/reward profiles.
SLM carries more volatility with a beta of 1.05 — 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 76/100), backed by strong 22.1% margins. Both earn "Exceptional 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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