Ares Capital Corporation (ARCC)vsKKR & Co. Inc. (KKR)
ARCC
Ares Capital Corporation
$19.74
+0.30%
FINANCIAL SERVICES · Cap: $14.15B
KKR
KKR & Co. Inc.
$101.08
+0.21%
FINANCIAL SERVICES · Cap: $93.16B
Smart Verdict
WallStSmart Research — data-driven comparison
KKR & Co. Inc. generates 732% more annual revenue ($25.83B vs $3.11B). ARCC leads profitability with a 30.9% profit margin vs 12.2%. KKR appears more attractively valued with a PEG of 0.46. KKR earns a higher WallStSmart Score of 66/100 (B-).
ARCC
Buy53
out of 100
Grade: C-
KKR
Strong Buy66
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
Growing faster than its price suggests
Large-cap with strong market position
Strong operational efficiency at 20.6%
Earnings expanding 40.0% YoY
Generating 3.2B in free cash flow
Areas to Watch
3.1% revenue growth
ROE of 6.9% — below average capital efficiency
Elevated debt levels
Weak financial health signals
Premium valuation, high expectations priced in
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 : KKR
The strongest argument for KKR centers on PEG Ratio, Market Cap, Operating Margin. PEG of 0.46 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 : KKR
The primary concerns for KKR are P/E Ratio, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.63 is elevated, increasing financial risk.
Key Dynamics to Monitor
KKR carries more volatility with a beta of 1.79 — expect wider price swings.
KKR is growing revenue faster at 7.8% — sustainability is the question.
KKR generates stronger free cash flow (3.2B), providing more financial flexibility.
Monitor ASSET MANAGEMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
KKR scores higher overall (66/100 vs 53/100). 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.
KKR & Co. Inc.
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
KKR & Co. Inc. is a leading global investment firm established in 1976, with a strong focus on private equity, credit, and real asset investments. The firm excels at identifying complex market opportunities and utilizes its extensive industry knowledge and global network to create sustainable long-term value across its portfolio. KKR is recognized for its commitment to sustainable investing, seamlessly integrating environmental, social, and governance (ESG) principles into its investment approach, thereby promoting responsible growth alongside financial performance. With a strategic emphasis on innovation and operational excellence, KKR remains a crucial player in the financial sector worldwide.
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