Ares Capital Corporation (ARCC)vsKKR & Co. Inc. (KKR)
ARCC
Ares Capital Corporation
$18.79
-0.58%
FINANCIAL SERVICES · Cap: $13.83B
KKR
KKR & Co. Inc.
$95.48
+0.99%
FINANCIAL SERVICES · Cap: $88.07B
Smart Verdict
WallStSmart Research — data-driven comparison
KKR & Co. Inc. generates 722% more annual revenue ($25.35B vs $3.08B). ARCC leads profitability with a 37.3% profit margin vs 11.7%. KKR appears more attractively valued with a PEG of 0.52. ARCC earns a higher WallStSmart Score of 56/100 (C).
ARCC
Buy56
out of 100
Grade: C
KKR
Hold48
out of 100
Grade: D+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 37 of every $100 in revenue as profit
Strong operational efficiency at 80.9%
Large-cap with strong market position
Growing faster than its price suggests
Generating 1.9B in free cash flow
Areas to Watch
4.2% revenue growth
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Elevated debt levels
Weak financial health signals
Revenue declined 6.6%
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 37.3% and operating margin at 80.9%.
Bull Case : KKR
The strongest argument for KKR centers on Market Cap, PEG Ratio, Free Cash Flow. PEG of 0.52 suggests the stock is reasonably priced for its growth.
Bear Case : ARCC
The primary concerns for ARCC are Revenue Growth, Debt/Equity, Piotroski F-Score.
Bear Case : KKR
The primary concerns for KKR are P/E Ratio, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.80 is elevated, increasing financial risk.
Key Dynamics to Monitor
ARCC profiles as a value stock while KKR is a declining play — different risk/reward profiles.
KKR carries more volatility with a beta of 1.85 — expect wider price swings.
ARCC is growing revenue faster at 4.2% — sustainability is the question.
KKR generates stronger free cash flow (1.9B), providing more financial flexibility.
Bottom Line
ARCC scores higher overall (56/100 vs 48/100), backed by strong 37.3% margins. Both earn "Buy" and "Hold" 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.
KKR & Co. Inc.
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
KKR & Co. Inc., established in 1976, is a leading global investment firm recognized for its expertise across private equity, credit, and real asset investments. Utilizing its extensive industry knowledge and global reach, KKR strategically identifies and seizes complex market opportunities, thereby generating sustainable long-term value for its portfolio companies. The firm's strong emphasis on sustainable investing is evidenced by its rigorous integration of environmental, social, and governance (ESG) criteria in its investment processes, ensuring not only robust financial performance but also responsible market growth. KKR's dedication to innovation and operational excellence solidifies its status as a pivotal player in the global financial landscape.
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