Ares Capital Corporation (ARCC)vsBrookfield Corp (BN)
ARCC
Ares Capital Corporation
$18.79
-0.58%
FINANCIAL SERVICES · Cap: $13.83B
BN
Brookfield Corp
$44.60
+1.06%
FINANCIAL SERVICES · Cap: $101.83B
Smart Verdict
WallStSmart Research — data-driven comparison
Brookfield Corp generates 2466% more annual revenue ($79.11B vs $3.08B). ARCC leads profitability with a 37.3% profit margin vs 1.7%. BN appears more attractively valued with a PEG of 1.27. BN earns a higher WallStSmart Score of 63/100 (C+).
ARCC
Buy56
out of 100
Grade: C
BN
Buy63
out of 100
Grade: C+
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%
Earnings expanding 158.8% YoY
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 28.9%
Areas to Watch
4.2% revenue growth
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
ROE of 2.8% — below average capital efficiency
1.7% margin — thin
Premium valuation, high expectations priced in
Negative free cash flow — burning cash
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 : BN
The strongest argument for BN centers on EPS Growth, Market Cap, Price/Book. PEG of 1.27 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 : BN
The primary concerns for BN are Return on Equity, Profit Margin, P/E Ratio. A P/E of 89.4x leaves little room for execution misses. Debt-to-equity of 5.72 is elevated, increasing financial risk.
Key Dynamics to Monitor
BN carries more volatility with a beta of 1.85 — expect wider price swings.
BN is growing revenue faster at 7.9% — sustainability is the question.
ARCC generates stronger free cash flow (114M), providing more financial flexibility.
Monitor ASSET MANAGEMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BN scores higher overall (63/100 vs 56/100). 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.
Brookfield Corp
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
Brookfield Corporation is an alternative asset manager and REIT/Real Estate Investment Manager firm focuses on real estate, renewable power, infrastructure and venture capital and private equity assets. The company is headquartered in Toronto, Canada with additional offices across Northern America; South America; Europe; Middle East and Asia.
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