WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arch Capital Group Ltd. generates 1041% more annual revenue ($19.23B vs $1.69B). SLMBP leads profitability with a 43.6% profit margin vs 24.4%. ACGL trades at a lower P/E of 7.7x. 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

SLMBP

Buy

50

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 4.7Quality: 4.0
Piotroski: 6/9Altman Z: -0.14

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

SLMBP3 strengths · Avg: 9.3/10
Return on EquityProfitability
30.7%10/10

Every $100 of equity generates 31 in profit

Profit MarginProfitability
43.6%10/10

Keeps 44 of every $100 in revenue as profit

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

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

SLMBP4 concerns · Avg: 2.5/10
P/E RatioValuation
35.0x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-9.4%2/10

Earnings declined 9.4%

Free Cash FlowQuality
$-134.83M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.142/10

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 24.4% and operating margin at 26.6%. 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 43.6% and operating margin at 29.2%.

Bear Case : ACGL

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

Bear Case : SLMBP

The primary concerns for SLMBP are P/E Ratio, EPS Growth, Free Cash Flow. Debt-to-equity of 2.36 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

SLMBP carries more volatility with a beta of 0.97 — expect wider price swings.

SLMBP is growing revenue faster at 8.1% — 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 50/100), 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.

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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