Barings Bdc (BBDC) Competitors

Ares Capital (NASDAQ:ARCC) and Barings Bdc (NYSE:BBDC) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, media sentiment, analyst recommendations, earnings and risk.

Is ARCC or BBDC a better dividend stock?

Ares Capital pays an annual dividend of $1.92 per share and has a dividend yield of 8.4%. Barings Bdc pays an annual dividend of $1.04 per share and has a dividend yield of 10.9%. 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. Barings Bdc pays out 110.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Barings Bdc has raised its dividend for 3 consecutive years. Barings Bdc is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Which has stronger earnings & valuation, ARCC or BBDC?

Ares Capital has higher revenue and earnings than Barings Bdc. Barings Bdc is trading at a lower price-to-earnings ratio than Ares 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	5.32	$1.52B	$2.05	11.17
Barings Bdc	$111.33M	9.07	$110.29M	$0.94	10.19

Do insiders and institutionals have more ownership in ARCC or BBDC?

27.4% of Ares Capital shares are held by institutional investors. Comparatively, 44.1% of Barings Bdc shares are held by institutional investors. 0.5% of Ares Capital shares are held by company insiders. Comparatively, 0.5% of Barings Bdc shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Do analysts rate ARCC or BBDC?

Ares Capital currently has a consensus target price of $22.21, indicating a potential downside of 3.02%. Barings Bdc has a consensus target price of $9.67, indicating a potential upside of 0.96%. Given Barings Bdc's higher possible upside, analysts clearly believe Barings Bdc 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)	5 Buy rating(s)	1 Strong Buy rating(s)	2.78
Barings Bdc	0 Sell rating(s)	1 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.67

Does the media prefer ARCC or BBDC?

In the previous week, Ares Capital had 27 more articles in the media than Barings Bdc. MarketBeat recorded 29 mentions for Ares Capital and 2 mentions for Barings Bdc. Barings Bdc's average media sentiment score of 1.22 beat Ares Capital's score of 1.05 indicating that Barings Bdc is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Ares Capital	18 Very Positive mention(s)	3 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Positive
Barings Bdc	2 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more risk & volatility, ARCC or BBDC?

Ares Capital has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Barings Bdc has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Is ARCC or BBDC more profitable?

Ares Capital has a net margin of 43.50% compared to Barings Bdc's net margin of 35.21%. Ares Capital's return on equity of 11.05% beat Barings Bdc's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Ares Capital	43.50%	11.05%	5.25%
Barings Bdc	35.21%	10.74%	4.80%

Summary

Ares Capital beats Barings Bdc on 12 of the 20 factors compared between the two stocks.