WallStSmart

Ares Capital Corporation (ARCC)vsBlackRock Inc (BLK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BlackRock Inc generates 693% more annual revenue ($24.22B vs $3.05B). ARCC leads profitability with a 42.6% profit margin vs 22.9%. BLK appears more attractively valued with a PEG of 0.99. BLK earns a higher WallStSmart Score of 70/100 (B-).

ARCC

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 8.0Value: 4.7Quality: 4.8
Piotroski: 3/9

BLK

Strong Buy

70

out of 100

Grade: B-

Growth: 6.0Profit: 7.5Value: 7.3Quality: 4.8
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARCCSignificantly Overvalued (-57.4%)

Margin of Safety

-57.4%

Fair Value

$12.65

Current Price

$18.06

$5.41 premium

UndervaluedFair: $12.65Overvalued
BLKSignificantly Overvalued (-308.5%)

Margin of Safety

-308.5%

Fair Value

$240.24

Current Price

$981.35

$741.11 premium

UndervaluedFair: $240.24Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARCC4 strengths · Avg: 10.0/10
P/E RatioValuation
9.7x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
42.6%10/10

Keeps 43 of every $100 in revenue as profit

Operating MarginProfitability
75.3%10/10

Strong operational efficiency at 75.3%

BLK6 strengths · Avg: 8.7/10
Operating MarginProfitability
36.7%10/10

Strong operational efficiency at 36.7%

Market CapQuality
$151.82B9/10

Large-cap with strong market position

Profit MarginProfitability
22.9%9/10

Keeps 23 of every $100 in revenue as profit

PEG RatioValuation
0.998/10

Growing faster than its price suggests

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
23.4%8/10

Revenue surging 23.4% year-over-year

Areas to Watch

ARCC4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.5%4/10

4.5% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.722/10

Expensive relative to growth rate

EPS GrowthGrowth
-24.9%2/10

Earnings declined 24.9%

BLK3 concerns · Avg: 3.0/10
P/E RatioValuation
27.6x4/10

Moderate valuation

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-31.7%2/10

Earnings declined 31.7%

Comparative Analysis Report

WallStSmart Research

Bull 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 : BLK

The strongest argument for BLK centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 22.9% and operating margin at 36.7%. Revenue growth of 23.4% demonstrates continued momentum.

Bear Case : ARCC

The primary concerns for ARCC are Revenue Growth, Piotroski F-Score, PEG Ratio.

Bear Case : BLK

The primary concerns for BLK are P/E Ratio, Piotroski F-Score, EPS Growth.

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 1.49 — expect wider price swings.

BLK is growing revenue faster at 23.4% — sustainability is the question.

BLK generates stronger free cash flow (2.2B), providing more financial flexibility.

Bottom Line

BLK scores higher overall (70/100 vs 56/100), backed by strong 22.9% margins and 23.4% 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.

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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