Ares Capital Corporation (ARCC)vsBlackRock Inc (BLK)
ARCC
Ares Capital Corporation
$19.74
+0.30%
FINANCIAL SERVICES · Cap: $14.15B
BLK
BlackRock Inc
$1,079.65
+1.62%
FINANCIAL SERVICES · Cap: $175.42B
Smart Verdict
WallStSmart Research — data-driven comparison
BlackRock Inc generates 779% more annual revenue ($27.30B vs $3.11B). ARCC leads profitability with a 30.9% profit margin vs 24.1%. BLK appears more attractively valued with a PEG of 0.89. BLK earns a higher WallStSmart Score of 78/100 (B+).
ARCC
Buy53
out of 100
Grade: C-
BLK
Strong Buy78
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
Strong operational efficiency at 35.1%
Revenue surging 30.6% year-over-year
Large-cap with strong market position
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Growing faster than its price suggests
Areas to Watch
3.1% revenue growth
ROE of 6.9% — below average capital efficiency
Elevated debt levels
Weak financial health signals
Moderate valuation
Weak financial health signals
Distress zone — elevated risk
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 : BLK
The strongest argument for BLK centers on Operating Margin, Revenue Growth, Market Cap. Profitability is solid with margins at 24.1% and operating margin at 35.1%. Revenue growth of 30.6% demonstrates continued momentum.
Bear Case : ARCC
The primary concerns for ARCC are Revenue Growth, Return on Equity, Debt/Equity.
Bear Case : BLK
The primary concerns for BLK are P/E Ratio, Piotroski F-Score, Altman Z-Score.
Key Dynamics to Monitor
ARCC profiles as a value stock while BLK is a growth play — different risk/reward profiles.
BLK carries more volatility with a beta of 1.43 — expect wider price swings.
BLK is growing revenue faster at 30.6% — sustainability is the question.
ARCC generates stronger free cash flow (336M), providing more financial flexibility.
Bottom Line
BLK scores higher overall (78/100 vs 53/100), backed by strong 24.1% margins and 30.6% 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.
BlackRock Inc
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
BlackRock, Inc. is an American multinational investment management corporation based in New York City.
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