WallStSmart

Ares Capital Corporation (ARCC)vsBlackRock Inc (BLK)

VS

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

Buy

53

out of 100

Grade: C-

Growth: 5.3Profit: 7.5Value: 5.0Quality: 3.8
Piotroski: 1/9

BLK

Strong Buy

78

out of 100

Grade: B+

Growth: 8.7Profit: 7.5Value: 6.3Quality: 5.0
Piotroski: 1/9Altman Z: 1.11

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARCC4 strengths · Avg: 9.5/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Profit MarginProfitability
30.9%10/10

Keeps 31 of every $100 in revenue as profit

Operating MarginProfitability
75.6%10/10

Strong operational efficiency at 75.6%

P/E RatioValuation
14.7x8/10

Attractively priced relative to earnings

BLK6 strengths · Avg: 9.2/10
Operating MarginProfitability
35.1%10/10

Strong operational efficiency at 35.1%

Revenue GrowthGrowth
30.6%10/10

Revenue surging 30.6% year-over-year

Market CapQuality
$175.42B9/10

Large-cap with strong market position

Profit MarginProfitability
24.1%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.269/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.898/10

Growing faster than its price suggests

Areas to Watch

ARCC4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.1%4/10

3.1% revenue growth

Return on EquityProfitability
6.9%3/10

ROE of 6.9% — below average capital efficiency

Debt/EquityHealth
1.143/10

Elevated debt levels

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

BLK3 concerns · Avg: 3.0/10
P/E RatioValuation
25.4x4/10

Moderate valuation

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Altman Z-ScoreHealth
1.112/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull 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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