Ares Capital Corporation (ARCC)vsBrookfield Corp (BN)
ARCC
Ares Capital Corporation
$18.06
+0.56%
FINANCIAL SERVICES · Cap: $12.90B
BN
Brookfield Corp
$39.22
-0.58%
FINANCIAL SERVICES · Cap: $86.53B
Smart Verdict
WallStSmart Research — data-driven comparison
Brookfield Corp generates 2444% more annual revenue ($77.66B vs $3.05B). ARCC leads profitability with a 42.6% profit margin vs 1.7%. BN appears more attractively valued with a PEG of 1.27. BN earns a higher WallStSmart Score of 64/100 (C+).
ARCC
Buy56
out of 100
Grade: C
BN
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-57.4%
Fair Value
$12.65
Current Price
$18.06
$5.41 premium
Margin of Safety
-103.3%
Fair Value
$22.93
Current Price
$39.22
$16.29 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 43 of every $100 in revenue as profit
Strong operational efficiency at 75.3%
Earnings expanding 80.4% YoY
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 29.2%
Areas to Watch
4.5% revenue growth
Weak financial health signals
Expensive relative to growth rate
Earnings declined 24.9%
3.5% revenue growth
ROE of 1.9% — below average capital efficiency
1.7% margin — thin
Premium valuation, high expectations priced in
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 42.6% and operating margin at 75.3%.
Bull Case : BN
The strongest argument for BN centers on EPS Growth, Market Cap, Price/Book. PEG of 1.27 suggests the stock is reasonably priced for its growth.
Bear Case : ARCC
The primary concerns for ARCC are Revenue Growth, Piotroski F-Score, PEG Ratio.
Bear Case : BN
The primary concerns for BN are Revenue Growth, Return on Equity, Profit Margin. A P/E of 78.1x leaves little room for execution misses. Thin 1.7% margins leave little buffer for downturns.
Key Dynamics to Monitor
BN carries more volatility with a beta of 1.86 — expect wider price swings.
ARCC is growing revenue faster at 4.5% — sustainability is the question.
Monitor ASSET MANAGEMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BN scores higher overall (64/100 vs 56/100). 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 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.
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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