PennantPark Floating Rate Capital (PFLT) Competitors

Ares Capital (NASDAQ:ARCC) and PennantPark Floating Rate Capital (NASDAQ:PFLT) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, media sentiment, institutional ownership, risk and earnings.

Do insiders & institutionals have more ownership in ARCC or PFLT?

27.4% of Ares Capital shares are owned by institutional investors. Comparatively, 19.8% of PennantPark Floating Rate Capital shares are owned by institutional investors. 0.5% of Ares Capital shares are owned by insiders. Comparatively, 1.0% of PennantPark Floating Rate Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Which has more risk & volatility, ARCC or PFLT?

Ares Capital has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, PennantPark Floating Rate Capital has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.

Does the media favor ARCC or PFLT?

In the previous week, Ares Capital had 8 more articles in the media than PennantPark Floating Rate Capital. MarketBeat recorded 16 mentions for Ares Capital and 8 mentions for PennantPark Floating Rate Capital. Ares Capital's average media sentiment score of 1.29 beat PennantPark Floating Rate Capital's score of 0.93 indicating that Ares Capital is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Ares Capital	14 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
PennantPark Floating Rate Capital	3 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is ARCC or PFLT more profitable?

PennantPark Floating Rate Capital has a net margin of 45.36% compared to Ares Capital's net margin of 44.94%. PennantPark Floating Rate Capital's return on equity of 10.76% beat Ares Capital's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Ares Capital	44.94%	10.48%	5.00%
PennantPark Floating Rate Capital	45.36%	10.76%	4.65%

Which has stronger valuation & earnings, ARCC or PFLT?

Ares Capital has higher revenue and earnings than PennantPark Floating Rate Capital. Ares Capital is trading at a lower price-to-earnings ratio than PennantPark Floating Rate Capital, 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	$2.99B	5.27	$1.52B	$2.05	10.89
PennantPark Floating Rate Capital	$89.89M	11.26	$91.84M	$0.84	12.14

Do analysts rate ARCC or PFLT?

Ares Capital presently has a consensus price target of $22.86, suggesting a potential upside of 2.41%. PennantPark Floating Rate Capital has a consensus price target of $10.88, suggesting a potential upside of 6.64%. Given PennantPark Floating Rate Capital's higher probable upside, analysts clearly believe PennantPark Floating Rate Capital is more favorable than Ares Capital.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ares Capital	0 Sell rating(s)	2 Hold rating(s)	7 Buy rating(s)	0 Strong Buy rating(s)	2.78
PennantPark Floating Rate Capital	0 Sell rating(s)	3 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.75

Is ARCC or PFLT a better dividend stock?

Ares Capital pays an annual dividend of $1.92 per share and has a dividend yield of 8.6%. PennantPark Floating Rate Capital pays an annual dividend of $1.23 per share and has a dividend yield of 12.1%. Ares Capital pays out 93.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PennantPark Floating Rate Capital pays out 146.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Ares Capital beats PennantPark Floating Rate Capital on 11 of the 19 factors compared between the two stocks.