Ares Capital Corporation (ARCC)vsBlackstone Group Inc (BX)
ARCC
Ares Capital Corporation
$19.74
+0.30%
FINANCIAL SERVICES · Cap: $14.15B
BX
Blackstone Group Inc
$128.51
+2.47%
FINANCIAL SERVICES · Cap: $149.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Blackstone Group Inc generates 398% more annual revenue ($15.48B vs $3.11B). ARCC leads profitability with a 30.9% profit margin vs 22.7%. BX appears more attractively valued with a PEG of 1.21. BX earns a higher WallStSmart Score of 75/100 (B+).
ARCC
Buy53
out of 100
Grade: C-
BX
Strong Buy75
out of 100
Grade: B+
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
Every $100 of equity generates 39 in profit
Strong operational efficiency at 54.4%
Earnings expanding 57.3% YoY
Large-cap with strong market position
Keeps 23 of every $100 in revenue as profit
Revenue surging 28.6% year-over-year
Areas to Watch
3.1% revenue growth
ROE of 6.9% — below average capital efficiency
Elevated debt levels
Weak financial health signals
Moderate valuation
Trading at 11.4x book value
Elevated debt levels
Weak financial health signals
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 : BX
The strongest argument for BX centers on Return on Equity, Operating Margin, EPS Growth. Profitability is solid with margins at 22.7% and operating margin at 54.4%. Revenue growth of 28.6% demonstrates continued momentum.
Bear Case : ARCC
The primary concerns for ARCC are Revenue Growth, Return on Equity, Debt/Equity.
Bear Case : BX
The primary concerns for BX are P/E Ratio, Price/Book, Debt/Equity. Debt-to-equity of 1.56 is elevated, increasing financial risk.
Key Dynamics to Monitor
ARCC profiles as a value stock while BX is a growth play — different risk/reward profiles.
BX carries more volatility with a beta of 1.56 — expect wider price swings.
BX is growing revenue faster at 28.6% — sustainability is the question.
BX generates stronger free cash flow (1.9B), providing more financial flexibility.
Bottom Line
BX scores higher overall (75/100 vs 53/100), backed by strong 22.7% margins and 28.6% 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.
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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