WallStSmart

Ares Capital Corporation (ARCC)vsBrookfield Asset Management Inc (BAM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Brookfield Asset Management Inc generates 58% more annual revenue ($4.82B vs $3.05B). BAM leads profitability with a 51.6% profit margin vs 42.6%. BAM appears more attractively valued with a PEG of 1.48. BAM earns a higher WallStSmart Score of 66/100 (B-).

ARCC

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 8.0Value: 4.7Quality: 4.8
Piotroski: 3/9

BAM

Strong Buy

66

out of 100

Grade: B-

Growth: 6.7Profit: 9.0Value: 7.3Quality: 6.0
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARCCSignificantly Overvalued (-57.4%)

Margin of Safety

-57.4%

Fair Value

$12.65

Current Price

$18.06

$5.41 premium

UndervaluedFair: $12.65Overvalued
BAMSignificantly Overvalued (-400.1%)

Margin of Safety

-400.1%

Fair Value

$10.47

Current Price

$42.87

$32.40 premium

UndervaluedFair: $10.47Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARCC4 strengths · Avg: 10.0/10
P/E RatioValuation
9.7x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
42.6%10/10

Keeps 43 of every $100 in revenue as profit

Operating MarginProfitability
75.3%10/10

Strong operational efficiency at 75.3%

BAM5 strengths · Avg: 9.6/10
Profit MarginProfitability
51.6%10/10

Keeps 52 of every $100 in revenue as profit

Operating MarginProfitability
67.9%10/10

Strong operational efficiency at 67.9%

Revenue GrowthGrowth
31.1%10/10

Revenue surging 31.1% year-over-year

Market CapQuality
$70.28B9/10

Large-cap with strong market position

Return on EquityProfitability
22.3%9/10

Every $100 of equity generates 22 in profit

Areas to Watch

ARCC4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.5%4/10

4.5% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.722/10

Expensive relative to growth rate

EPS GrowthGrowth
-24.9%2/10

Earnings declined 24.9%

BAM4 concerns · Avg: 3.3/10
P/E RatioValuation
27.9x4/10

Moderate valuation

Price/BookValuation
8.5x4/10

Trading at 8.5x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-20.7%2/10

Earnings declined 20.7%

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 42.6% and operating margin at 75.3%.

Bull Case : BAM

The strongest argument for BAM centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 51.6% and operating margin at 67.9%. Revenue growth of 31.1% demonstrates continued momentum.

Bear Case : ARCC

The primary concerns for ARCC are Revenue Growth, Piotroski F-Score, PEG Ratio.

Bear Case : BAM

The primary concerns for BAM are P/E Ratio, Price/Book, Piotroski F-Score.

Key Dynamics to Monitor

ARCC profiles as a value stock while BAM is a growth play — different risk/reward profiles.

BAM carries more volatility with a beta of 1.29 — expect wider price swings.

BAM is growing revenue faster at 31.1% — sustainability is the question.

BAM generates stronger free cash flow (706M), providing more financial flexibility.

Bottom Line

BAM scores higher overall (66/100 vs 56/100), backed by strong 51.6% margins and 31.1% 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 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 Asset Management Inc

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Brookfield Asset Management is a leading global alternative asset manager and one of the largest investors in real assets.

Visit Website →

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