Ares Capital Corporation (ARCC)vsBrookfield Asset Management Ltd. (BAM)
ARCC
Ares Capital Corporation
$19.74
+0.30%
FINANCIAL SERVICES · Cap: $14.15B
BAM
Brookfield Asset Management Ltd.
$47.26
+0.04%
FINANCIAL SERVICES · Cap: $75.49B
Smart Verdict
WallStSmart Research — data-driven comparison
Brookfield Asset Management Ltd. generates 85% more annual revenue ($5.74B vs $3.11B). BAM leads profitability with a 48.9% profit margin vs 30.9%. BAM appears more attractively valued with a PEG of 1.05. BAM earns a higher WallStSmart Score of 77/100 (B+).
ARCC
Buy53
out of 100
Grade: C-
BAM
Strong Buy77
out of 100
Grade: B+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Keeps 31 of every $100 in revenue as profit
Strong operational efficiency at 75.6%
Attractively priced relative to earnings
Keeps 49 of every $100 in revenue as profit
Strong operational efficiency at 68.7%
Revenue surging 60.8% year-over-year
Large-cap with strong market position
Earnings expanding 47.4% YoY
Areas to Watch
3.1% revenue growth
ROE of 6.9% — below average capital efficiency
Elevated debt levels
Weak financial health signals
Moderate valuation
Trading at 10.1x book value
Grey zone — moderate risk
ROE of 6.0% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : ARCC
The strongest argument for ARCC centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 30.9% and operating margin at 75.6%.
Bull Case : BAM
The strongest argument for BAM centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 48.9% and operating margin at 68.7%. Revenue growth of 60.8% demonstrates continued momentum.
Bear Case : ARCC
The primary concerns for ARCC are Revenue Growth, Return on Equity, Debt/Equity.
Bear Case : BAM
The primary concerns for BAM are P/E Ratio, Price/Book, Altman Z-Score. Debt-to-equity of 5.69 is elevated, increasing financial risk.
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 1.26 — expect wider price swings.
BAM is growing revenue faster at 60.8% — sustainability is the question.
BAM generates stronger free cash flow (393M), providing more financial flexibility.
Bottom Line
BAM scores higher overall (77/100 vs 53/100), backed by strong 48.9% margins and 60.8% 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 prominent publicly traded business development company that focuses on delivering tailored financing solutions to middle-market firms across diverse sectors. The company employs a dual investment strategy that integrates both debt and equity investments, aiming to achieve strong risk-adjusted returns while prioritizing capital preservation. Backed by the extensive expertise of Ares Management Corporation, ARCC's disciplined credit analysis and diversified investment portfolio position it to capitalize on growth opportunities and enhance long-term shareholder value in the evolving private equity landscape.
Brookfield Asset Management Ltd.
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
Brookfield Asset Management is a leading global alternative asset manager and one of the largest investors in real assets.
Visit Website →Compare with Other ASSET MANAGEMENT Stocks
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