WallStSmart

Ares Capital Corporation (ARCC)vsBlackstone Group Inc (BX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Blackstone Group Inc generates 367% more annual revenue ($14.40B vs $3.08B). ARCC leads profitability with a 37.3% profit margin vs 21.2%. BX appears more attractively valued with a PEG of 1.96. BX earns a higher WallStSmart Score of 61/100 (C+).

ARCC

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 8.0Value: 5.7Quality: 3.8
Piotroski: 3/9

BX

Buy

61

out of 100

Grade: C+

Growth: 6.7Profit: 9.0Value: 5.0Quality: 3.5
Piotroski: 3/9Altman Z: 1.29

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARCC4 strengths · Avg: 10.0/10
P/E RatioValuation
11.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Profit MarginProfitability
37.3%10/10

Keeps 37 of every $100 in revenue as profit

Operating MarginProfitability
80.9%10/10

Strong operational efficiency at 80.9%

BX4 strengths · Avg: 9.5/10
Return on EquityProfitability
36.5%10/10

Every $100 of equity generates 36 in profit

Operating MarginProfitability
38.0%10/10

Strong operational efficiency at 38.0%

Market CapQuality
$140.45B9/10

Large-cap with strong market position

Profit MarginProfitability
21.2%9/10

Keeps 21 of every $100 in revenue as profit

Areas to Watch

ARCC4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

Debt/EquityHealth
1.133/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.722/10

Expensive relative to growth rate

BX4 concerns · Avg: 4.0/10
PEG RatioValuation
1.964/10

Expensive relative to growth rate

P/E RatioValuation
29.5x4/10

Moderate valuation

Price/BookValuation
11.1x4/10

Trading at 11.1x book value

EPS GrowthGrowth
3.9%4/10

3.9% earnings growth

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 37.3% and operating margin at 80.9%.

Bull Case : BX

The strongest argument for BX centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 21.2% and operating margin at 38.0%.

Bear Case : ARCC

The primary concerns for ARCC are Revenue Growth, Debt/Equity, Piotroski F-Score.

Bear Case : BX

The primary concerns for BX are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 1.69 is elevated, increasing financial risk.

Key Dynamics to Monitor

ARCC profiles as a value stock while BX is a mature play — different risk/reward profiles.

BX carries more volatility with a beta of 1.63 — expect wider price swings.

BX is growing revenue faster at 5.7% — sustainability is the question.

BX generates stronger free cash flow (958M), providing more financial flexibility.

Bottom Line

BX scores higher overall (61/100 vs 56/100), backed by strong 21.2% margins. 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 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.

Blackstone Group Inc

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Blackstone Group Inc. is an alternative asset management company specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity strategies and multiple asset classes. The company is headquartered in New York, New York with additional offices across Asia, Europe and North America.

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