Ares Capital Corporation (ARCC)vsBrookfield Asset Management Inc (BAM)
ARCC
Ares Capital Corporation
$18.06
+0.56%
FINANCIAL SERVICES · Cap: $12.90B
BAM
Brookfield Asset Management Inc
$42.87
-1.08%
FINANCIAL SERVICES · Cap: $70.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Brookfield Asset Management Inc generates 58% more annual revenue ($4.82B vs $3.05B). BAM leads profitability with a 51.6% profit margin vs 42.6%. BAM appears more attractively valued with a PEG of 1.48. BAM earns a higher WallStSmart Score of 66/100 (B-).
ARCC
Buy56
out of 100
Grade: C
BAM
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-57.4%
Fair Value
$12.65
Current Price
$18.06
$5.41 premium
Margin of Safety
-400.1%
Fair Value
$10.47
Current Price
$42.87
$32.40 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 43 of every $100 in revenue as profit
Strong operational efficiency at 75.3%
Keeps 52 of every $100 in revenue as profit
Strong operational efficiency at 67.9%
Revenue surging 31.1% year-over-year
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Areas to Watch
4.5% revenue growth
Weak financial health signals
Expensive relative to growth rate
Earnings declined 24.9%
Moderate valuation
Trading at 8.5x book value
Weak financial health signals
Earnings declined 20.7%
Comparative Analysis Report
WallStSmart ResearchBull Case : ARCC
The strongest argument for ARCC centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 42.6% and operating margin at 75.3%.
Bull Case : BAM
The strongest argument for BAM centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 51.6% and operating margin at 67.9%. Revenue growth of 31.1% demonstrates continued momentum.
Bear Case : ARCC
The primary concerns for ARCC are Revenue Growth, Piotroski F-Score, PEG Ratio.
Bear Case : BAM
The primary concerns for BAM are P/E Ratio, Price/Book, Piotroski F-Score.
Key Dynamics to Monitor
ARCC profiles as a value stock while BAM is a growth play — different risk/reward profiles.
BAM carries more volatility with a beta of 1.29 — expect wider price swings.
BAM is growing revenue faster at 31.1% — sustainability is the question.
BAM generates stronger free cash flow (706M), providing more financial flexibility.
Bottom Line
BAM scores higher overall (66/100 vs 56/100), backed by strong 51.6% margins and 31.1% revenue growth. 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.
Ares Capital Corporation
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
Ares Capital Corporation (ARCC) is a leading publicly traded business development company that specializes in providing customized financing solutions to middle-market companies across various sectors. The firm employs a flexible investment strategy, incorporating both debt and equity investments to deliver sustainable risk-adjusted returns to its investors. Backed by rigorous credit assessment and a well-diversified portfolio, Ares Capital focuses on capital preservation while actively pursuing growth opportunities in the private equity space. With the added strength of its parent company, Ares Management Corporation, ARCC benefits from extensive resources and a global footprint, further enhancing its strategic positioning in the market.
Brookfield Asset Management Inc
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
Brookfield Asset Management is a leading global alternative asset manager and one of the largest investors in real assets.
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