Ares Capital Corporation (ARCC)vsBlackRock Inc (BLK)
ARCC
Ares Capital Corporation
$18.79
-0.58%
FINANCIAL SERVICES · Cap: $13.83B
BLK
BlackRock Inc
$995.60
+1.52%
FINANCIAL SERVICES · Cap: $158.18B
Smart Verdict
WallStSmart Research — data-driven comparison
BlackRock Inc generates 732% more annual revenue ($25.64B vs $3.08B). ARCC leads profitability with a 37.3% profit margin vs 24.4%. BLK appears more attractively valued with a PEG of 1.30. BLK earns a higher WallStSmart Score of 78/100 (B+).
ARCC
Buy56
out of 100
Grade: C
BLK
Strong Buy78
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%
Strong operational efficiency at 35.6%
Large-cap with strong market position
Keeps 24 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Revenue surging 27.0% year-over-year
Areas to Watch
4.2% revenue growth
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
Negative free cash flow — burning cash
Distress zone — elevated risk
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 : BLK
The strongest argument for BLK centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 24.4% and operating margin at 35.6%. Revenue growth of 27.0% demonstrates continued momentum.
Bear Case : ARCC
The primary concerns for ARCC are Revenue Growth, Debt/Equity, Piotroski F-Score.
Bear Case : BLK
The primary concerns for BLK are P/E Ratio, Piotroski F-Score, Free Cash Flow.
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 1.46 — expect wider price swings.
BLK is growing revenue faster at 27.0% — sustainability is the question.
ARCC generates stronger free cash flow (114M), providing more financial flexibility.
Bottom Line
BLK scores higher overall (78/100 vs 56/100), backed by strong 24.4% margins and 27.0% 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.
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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