Ares Capital Corporation (ARCC)vsBrookfield Corp (BN)
ARCC
Ares Capital Corporation
$19.74
+0.30%
FINANCIAL SERVICES · Cap: $14.15B
BN
Brookfield Corp
$38.22
+0.45%
FINANCIAL SERVICES · Cap: $85.32B
Smart Verdict
WallStSmart Research — data-driven comparison
Brookfield Corp generates 2498% more annual revenue ($80.69B vs $3.11B). ARCC leads profitability with a 30.9% profit margin vs 1.8%. BN appears more attractively valued with a PEG of 1.27. BN earns a higher WallStSmart Score of 63/100 (C+).
ARCC
Buy53
out of 100
Grade: C-
BN
Buy63
out of 100
Grade: C+
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
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 25.7%
Earnings expanding 40.3% YoY
Areas to Watch
3.1% revenue growth
ROE of 6.9% — below average capital efficiency
Elevated debt levels
Weak financial health signals
ROE of 3.0% — below average capital efficiency
1.8% margin — thin
Premium valuation, high expectations priced in
Negative free cash flow — burning cash
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 : BN
The strongest argument for BN centers on Market Cap, Price/Book, Operating Margin. PEG of 1.27 suggests the stock is reasonably priced for its growth.
Bear Case : ARCC
The primary concerns for ARCC are Revenue Growth, Return on Equity, Debt/Equity.
Bear Case : BN
The primary concerns for BN are Return on Equity, Profit Margin, P/E Ratio. A P/E of 70.8x leaves little room for execution misses. Debt-to-equity of 5.69 is elevated, increasing financial risk.
Key Dynamics to Monitor
BN carries more volatility with a beta of 1.82 — expect wider price swings.
BN is growing revenue faster at 8.5% — sustainability is the question.
ARCC generates stronger free cash flow (336M), providing more financial flexibility.
Monitor ASSET MANAGEMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BN scores higher overall (63/100 vs 53/100). Both earn "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.
Brookfield Corp
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
Brookfield Corporation is an alternative asset manager and REIT/Real Estate Investment Manager firm focuses on real estate, renewable power, infrastructure and venture capital and private equity assets. The company is headquartered in Toronto, Canada with additional offices across Northern America; South America; Europe; Middle East and Asia.
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