Ares Capital (ARCC) Competitors

Ares Capital (NASDAQ:ARCC) and Bank of New York Mellon (NYSE:BK) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their media sentiment, valuation, dividends, community ranking, institutional ownership, analyst recommendations, risk, profitability and earnings.

Is ARCC or BK a better dividend stock?

Ares Capital pays an annual dividend of $1.92 per share and has a dividend yield of 9.3%. Bank of New York Mellon pays an annual dividend of $1.88 per share and has a dividend yield of 2.4%. Ares Capital pays out 78.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bank of New York Mellon pays out 30.6% of its earnings in the form of a dividend. Bank of New York Mellon has increased its dividend for 14 consecutive years.

Do insiders & institutionals believe in ARCC or BK?

27.4% of Ares Capital shares are owned by institutional investors. Comparatively, 85.3% of Bank of New York Mellon shares are owned by institutional investors. 0.5% of Ares Capital shares are owned by company insiders. Comparatively, 0.1% of Bank of New York Mellon shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Does the media favor ARCC or BK?

In the previous week, Bank of New York Mellon had 19 more articles in the media than Ares Capital. MarketBeat recorded 43 mentions for Bank of New York Mellon and 24 mentions for Ares Capital. Bank of New York Mellon's average media sentiment score of 1.26 beat Ares Capital's score of 0.60 indicating that Bank of New York Mellon is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Ares Capital	10 Very Positive mention(s)	2 Positive mention(s)	6 Neutral mention(s)	5 Negative mention(s)	0 Very Negative mention(s)	Positive
Bank of New York Mellon	32 Very Positive mention(s)	1 Positive mention(s)	7 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has stronger earnings and valuation, ARCC or BK?

Bank of New York Mellon has higher revenue and earnings than Ares Capital. Ares Capital is trading at a lower price-to-earnings ratio than Bank of New York Mellon, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ares Capital	$1.71B	8.31	$1.52B	$2.45	8.46
Bank of New York Mellon	$18.55B	3.01	$4.53B	$6.14	12.66

Do analysts prefer ARCC or BK?

Ares Capital currently has a consensus price target of $22.61, suggesting a potential upside of 9.04%. Bank of New York Mellon has a consensus price target of $91.31, suggesting a potential upside of 17.45%. Given Bank of New York Mellon's higher possible upside, analysts clearly believe Bank of New York Mellon is more favorable than Ares Capital.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ares Capital	0 Sell rating(s)	3 Hold rating(s)	7 Buy rating(s)	1 Strong Buy rating(s)	2.82
Bank of New York Mellon	0 Sell rating(s)	5 Hold rating(s)	9 Buy rating(s)	0 Strong Buy rating(s)	2.64

Which has more risk and volatility, ARCC or BK?

Ares Capital has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Bank of New York Mellon has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Is ARCC or BK more profitable?

Ares Capital has a net margin of 50.90% compared to Bank of New York Mellon's net margin of 11.35%. Bank of New York Mellon's return on equity of 12.68% beat Ares Capital's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Ares Capital	50.90%	11.54%	5.50%
Bank of New York Mellon	11.35%	12.68%	1.10%

Does the MarketBeat Community prefer ARCC or BK?

Bank of New York Mellon received 491 more outperform votes than Ares Capital when rated by MarketBeat users. Likewise, 66.47% of users gave Bank of New York Mellon an outperform vote while only 62.52% of users gave Ares Capital an outperform vote.

Company	Underperform	Outperform
Ares Capital	Outperform Votes 417 62.52%	Underperform Votes 250 37.48%
Bank of New York Mellon	Outperform Votes 908 66.47%	Underperform Votes 458 33.53%

Summary

Bank of New York Mellon beats Ares Capital on 15 of the 22 factors compared between the two stocks.