ARCC vs. AMP, STT, TROW, NTRS, SEIC, BEN, IVZ, AMG, MAIN, and CNS
Should you be buying Ares Capital stock or one of its competitors? The main competitors of Ares Capital include Ameriprise Financial (AMP), State Street (STT), T. Rowe Price Group (TROW), Northern Trust (NTRS), SEI Investments (SEIC), Franklin Resources (BEN), Invesco (IVZ), Affiliated Managers Group (AMG), Main Street Capital (MAIN), and Cohen & Steers (CNS). These companies are all part of the "asset management & custody banks" industry.
Ares Capital vs.
Ameriprise Financial (NYSE:AMP) and Ares Capital (NASDAQ:ARCC) are both large-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their community ranking, profitability, analyst recommendations, media sentiment, earnings, institutional ownership, dividends, valuation and risk.
84.0% of Ameriprise Financial shares are owned by institutional investors. Comparatively, 27.4% of Ares Capital shares are owned by institutional investors. 1.0% of Ameriprise Financial shares are owned by insiders. Comparatively, 0.6% of Ares Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Ameriprise Financial has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Ares Capital has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.
Ameriprise Financial pays an annual dividend of $5.92 per share and has a dividend yield of 1.1%. Ares Capital pays an annual dividend of $1.92 per share and has a dividend yield of 8.2%. Ameriprise Financial pays out 22.7% of its earnings in the form of a dividend. Ares Capital pays out 73.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Ameriprise Financial has raised its dividend for 18 consecutive years.
Ares Capital has a net margin of 53.71% compared to Ameriprise Financial's net margin of 15.99%. Ameriprise Financial's return on equity of 68.52% beat Ares Capital's return on equity.
Ameriprise Financial presently has a consensus price target of $494.89, suggesting a potential downside of 11.79%. Ares Capital has a consensus price target of $22.29, suggesting a potential downside of 4.82%. Given Ares Capital's stronger consensus rating and higher probable upside, analysts plainly believe Ares Capital is more favorable than Ameriprise Financial.
Ameriprise Financial received 185 more outperform votes than Ares Capital when rated by MarketBeat users. Likewise, 63.47% of users gave Ameriprise Financial an outperform vote while only 62.46% of users gave Ares Capital an outperform vote.
In the previous week, Ameriprise Financial had 8 more articles in the media than Ares Capital. MarketBeat recorded 25 mentions for Ameriprise Financial and 17 mentions for Ares Capital. Ares Capital's average media sentiment score of 0.98 beat Ameriprise Financial's score of 0.85 indicating that Ares Capital is being referred to more favorably in the news media.
Ameriprise Financial has higher revenue and earnings than Ares Capital. Ares Capital is trading at a lower price-to-earnings ratio than Ameriprise Financial, indicating that it is currently the more affordable of the two stocks.
Summary
Ameriprise Financial beats Ares Capital on 13 of the 22 factors compared between the two stocks.
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Media Sentiment Over Time
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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This page (NASDAQ:ARCC) was last updated on 1/22/2025 by MarketBeat.com Staff
