WallStSmart

Arch Capital Group Ltd (ACGL)vsSLM Corp Pb Pref (SLMBP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd generates 1097% more annual revenue ($19.93B vs $1.67B). SLMBP leads profitability with a 44.9% profit margin vs 22.1%. ACGL trades at a lower P/E of 8.4x. ACGL earns a higher WallStSmart Score of 81/100 (A-).

ACGL

Exceptional Buy

81

out of 100

Grade: A-

Growth: 8.7Profit: 8.0Value: 7.0Quality: 6.5
Piotroski: 5/9

SLMBP

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 8.5Value: 4.7Quality: 5.5
Piotroski: 6/9Altman Z: 0.63

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACGL6 strengths · Avg: 9.0/10
P/E RatioValuation
8.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

EPS GrowthGrowth
38.8%8/10

Earnings expanding 38.8% YoY

SLMBP3 strengths · Avg: 10.0/10
Return on EquityProfitability
30.9%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%

Areas to Watch

ACGL0 concerns · Avg: 0/10

No major concerns identified

SLMBP4 concerns · Avg: 3.0/10
P/E RatioValuation
34.7x4/10

Premium valuation, high expectations priced in

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
0.632/10

Distress zone — elevated risk

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 22.1% and operating margin at 29.5%. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : SLMBP

The strongest argument for SLMBP centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 44.9% and operating margin at 70.1%.

Bear Case : ACGL

No major red flags identified for ACGL, but monitor valuation.

Bear Case : SLMBP

The primary concerns for SLMBP are P/E Ratio, Revenue Growth, Free Cash Flow. Debt-to-equity of 2.39 is elevated, increasing financial risk.

Key Dynamics to Monitor

ACGL profiles as a mature stock while SLMBP is a value play — different risk/reward profiles.

SLMBP 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 56/100), backed by strong 22.1% margins. Both earn "Exceptional 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.

SLM Corp Pb Pref

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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