Ares Capital Corporation (ARCC)vsBlackstone Group Inc (BX)
ARCC
Ares Capital Corporation
$18.06
+0.56%
FINANCIAL SERVICES · Cap: $12.90B
BX
Blackstone Group Inc
$108.38
+0.37%
FINANCIAL SERVICES · Cap: $131.98B
Smart Verdict
WallStSmart Research — data-driven comparison
Blackstone Group Inc generates 366% more annual revenue ($14.21B vs $3.05B). ARCC leads profitability with a 42.6% profit margin vs 21.2%. BX appears more attractively valued with a PEG of 1.17. BX earns a higher WallStSmart Score of 77/100 (B+).
ARCC
Buy56
out of 100
Grade: C
BX
Strong Buy77
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-57.4%
Fair Value
$12.65
Current Price
$18.06
$5.41 premium
Margin of Safety
+35.7%
Fair Value
$181.12
Current Price
$108.38
$72.74 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 43 of every $100 in revenue as profit
Strong operational efficiency at 75.3%
Strong operational efficiency at 52.8%
Revenue surging 50.6% year-over-year
Large-cap with strong market position
Every $100 of equity generates 29 in profit
Keeps 21 of every $100 in revenue as profit
Earnings expanding 42.5% YoY
Areas to Watch
4.5% revenue growth
Weak financial health signals
Expensive relative to growth rate
Earnings declined 24.9%
Moderate valuation
Trading at 9.8x book value
Elevated debt levels
Weak financial health signals
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 42.6% and operating margin at 75.3%.
Bull Case : BX
The strongest argument for BX centers on Operating Margin, Revenue Growth, Market Cap. Profitability is solid with margins at 21.2% and operating margin at 52.8%. Revenue growth of 50.6% demonstrates continued momentum.
Bear Case : ARCC
The primary concerns for ARCC are Revenue Growth, Piotroski F-Score, PEG Ratio.
Bear Case : BX
The primary concerns for BX are P/E Ratio, Price/Book, Debt/Equity. Debt-to-equity of 1.63 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 1.79 — expect wider price swings.
BX is growing revenue faster at 50.6% — sustainability is the question.
ARCC generates stronger free cash flow (248M), providing more financial flexibility.
Bottom Line
BX scores higher overall (77/100 vs 56/100), backed by strong 21.2% margins and 50.6% 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 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.
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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