Ares Capital Corporation (ARCC)vsBrookfield Asset Management Ltd. (BAM)
ARCC
Ares Capital Corporation
$18.79
-0.58%
FINANCIAL SERVICES · Cap: $13.83B
BAM
Brookfield Asset Management Ltd.
$46.70
+2.25%
FINANCIAL SERVICES · Cap: $76.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Brookfield Asset Management Ltd. generates 65% more annual revenue ($5.07B vs $3.08B). BAM leads profitability with a 49.7% profit margin vs 37.3%. BAM appears more attractively valued with a PEG of 1.46. BAM earns a higher WallStSmart Score of 68/100 (B-).
ARCC
Buy56
out of 100
Grade: C
BAM
Strong Buy68
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 37 of every $100 in revenue as profit
Strong operational efficiency at 80.9%
Every $100 of equity generates 33 in profit
Keeps 50 of every $100 in revenue as profit
Strong operational efficiency at 64.5%
Large-cap with strong market position
Revenue surging 23.8% year-over-year
Areas to Watch
4.2% revenue growth
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 9.9x book value
Grey zone — moderate risk
Weak financial health signals
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 37.3% and operating margin at 80.9%.
Bull Case : BAM
The strongest argument for BAM centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 49.7% and operating margin at 64.5%. Revenue growth of 23.8% demonstrates continued momentum.
Bear Case : ARCC
The primary concerns for ARCC are Revenue Growth, Debt/Equity, Piotroski F-Score.
Bear Case : BAM
The primary concerns for BAM are P/E Ratio, Price/Book, Altman Z-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 1.25 — expect wider price swings.
BAM is growing revenue faster at 23.8% — sustainability is the question.
BAM generates stronger free cash flow (339M), providing more financial flexibility.
Bottom Line
BAM scores higher overall (68/100 vs 56/100), backed by strong 49.7% margins and 23.8% 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 leading publicly traded business development company focused on providing customized financing solutions to middle-market businesses across multiple sectors. With a dual investment strategy encompassing both debt and equity, ARCC is dedicated to delivering strong risk-adjusted returns for investors while emphasizing capital preservation. The firm's comprehensive credit evaluation process and diversified investment portfolio reflect its commitment to sustainable growth in the private equity market. Leveraging the substantial resources and global capabilities of its parent, Ares Management Corporation, ARCC is well-equipped to seize emerging investment opportunities and drive long-term value creation.
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.
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