Seek Returns logo

AFL vs. ARCC: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at AFL and ARCC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolAFLARCC
Company NameAflac IncorporatedAres Capital Corporation
CountryUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS IndustryInsuranceCapital Markets
Market Capitalization57.71 billion USD15.72 billion USD
ExchangeNYSENasdaqGS
Listing DateMarch 17, 1980October 5, 2004
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of AFL and ARCC by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

AFL vs. ARCC: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolAFLARCC
5-Day Price Return1.13%-1.63%
13-Week Price Return0.07%1.73%
26-Week Price Return3.84%-3.42%
52-Week Price Return2.03%6.96%
Month-to-Date Return7.58%-1.50%
Year-to-Date Return3.34%1.83%
10-Day Avg. Volume2.63M3.42M
3-Month Avg. Volume2.29M3.93M
3-Month Volatility17.96%13.02%
Beta0.860.76

Profitability

Return on Equity (TTM)

AFL

9.33%

Insurance Industry

Max
29.03%
Q3
18.11%
Median
13.90%
Q1
10.42%
Min
-0.64%

AFL’s Return on Equity of 9.33% is in the lower quartile for the Insurance industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

ARCC

10.05%

Capital Markets Industry

Max
38.97%
Q3
21.61%
Median
13.77%
Q1
8.31%
Min
-4.25%

ARCC’s Return on Equity of 10.05% is on par with the norm for the Capital Markets industry, indicating its profitability relative to shareholder equity is typical for the sector.

AFL vs. ARCC: A comparison of their Return on Equity (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Net Profit Margin (TTM)

AFL

15.32%

Insurance Industry

Max
26.78%
Q3
14.06%
Median
9.15%
Q1
5.48%
Min
-7.05%

A Net Profit Margin of 15.32% places AFL in the upper quartile for the Insurance industry, signifying strong profitability and more effective cost management than most of its peers.

ARCC

44.94%

Capital Markets Industry

Max
66.67%
Q3
35.11%
Median
23.49%
Q1
13.63%
Min
-15.18%

A Net Profit Margin of 44.94% places ARCC in the upper quartile for the Capital Markets industry, signifying strong profitability and more effective cost management than most of its peers.

AFL vs. ARCC: A comparison of their Net Profit Margin (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Operating Profit Margin (TTM)

AFL

21.35%

Insurance Industry

Max
35.49%
Q3
19.49%
Median
14.35%
Q1
8.53%
Min
-5.25%

In the Insurance industry, Operating Profit Margin is often not the primary measure of operational efficiency.

ARCC

48.72%

Capital Markets Industry

Max
86.40%
Q3
46.46%
Median
32.80%
Q1
18.32%
Min
-21.87%

An Operating Profit Margin of 48.72% places ARCC in the upper quartile for the Capital Markets industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AFL vs. ARCC: A comparison of their Operating Profit Margin (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Profitability at a Glance

SymbolAFLARCC
Return on Equity (TTM)9.33%10.05%
Return on Assets (TTM)1.99%4.80%
Net Profit Margin (TTM)15.32%44.94%
Operating Profit Margin (TTM)21.35%48.72%
Gross Profit Margin (TTM)--50.28%

Financial Strength

Current Ratio (MRQ)

AFL

0.11

Insurance Industry

Max
2.97
Q3
1.33
Median
0.55
Q1
0.15
Min
0.00

For the Insurance industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

ARCC

1.07

Capital Markets Industry

Max
3.76
Q3
1.89
Median
1.01
Q1
0.54
Min
-0.41

For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

AFL vs. ARCC: A comparison of their Current Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Debt-to-Equity Ratio (MRQ)

AFL

0.33

Insurance Industry

Max
1.25
Q3
0.65
Median
0.34
Q1
0.22
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Insurance industry.

ARCC

1.01

Capital Markets Industry

Max
6.62
Q3
2.84
Median
1.02
Q1
0.32
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.

AFL vs. ARCC: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Interest Coverage Ratio (TTM)

AFL

33.57

Insurance Industry

Max
43.68
Q3
20.84
Median
9.56
Q1
3.34
Min
-5.73

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Insurance industry.

ARCC

2.48

Capital Markets Industry

Max
126.03
Q3
60.98
Median
11.77
Q1
4.95
Min
-36.26

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.

AFL vs. ARCC: A comparison of their Interest Coverage Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Financial Strength at a Glance

SymbolAFLARCC
Current Ratio (MRQ)0.111.07
Quick Ratio (MRQ)0.111.07
Debt-to-Equity Ratio (MRQ)0.331.01
Interest Coverage Ratio (TTM)33.572.48

Growth

Revenue Growth

AFL vs. ARCC: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AFL vs. ARCC: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

AFL

1.98%

Insurance Industry

Max
8.23%
Q3
4.54%
Median
3.42%
Q1
1.97%
Min
0.00%

AFL’s Dividend Yield of 1.98% is consistent with its peers in the Insurance industry, providing a dividend return that is standard for its sector.

ARCC

7.69%

Capital Markets Industry

Max
10.26%
Q3
4.86%
Median
2.78%
Q1
1.22%
Min
0.00%

With a Dividend Yield of 7.69%, ARCC offers a more attractive income stream than most of its peers in the Capital Markets industry, signaling a strong commitment to shareholder returns.

AFL vs. ARCC: A comparison of their Dividend Yield (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Dividend Payout Ratio (TTM)

AFL

34.55%

Insurance Industry

Max
168.02%
Q3
85.57%
Median
50.71%
Q1
22.04%
Min
0.00%

AFL’s Dividend Payout Ratio of 34.55% is within the typical range for the Insurance industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ARCC

89.80%

Capital Markets Industry

Max
200.72%
Q3
101.92%
Median
57.97%
Q1
32.36%
Min
0.00%

ARCC’s Dividend Payout Ratio of 89.80% is within the typical range for the Capital Markets industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AFL vs. ARCC: A comparison of their Dividend Payout Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Dividend at a Glance

SymbolAFLARCC
Dividend Yield (TTM)1.98%7.69%
Dividend Payout Ratio (TTM)34.55%89.80%

Valuation

Price-to-Earnings Ratio (TTM)

AFL

23.65

Insurance Industry

Max
28.91
Q3
17.76
Median
13.63
Q1
10.02
Min
2.89

A P/E Ratio of 23.65 places AFL in the upper quartile for the Insurance industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

ARCC

11.68

Capital Markets Industry

Max
58.89
Q3
31.00
Median
18.54
Q1
12.09
Min
5.24

In the lower quartile for the Capital Markets industry, ARCC’s P/E Ratio of 11.68 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

AFL vs. ARCC: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Price-to-Sales Ratio (TTM)

AFL

3.62

Insurance Industry

Max
3.72
Q3
1.98
Median
1.23
Q1
0.81
Min
0.23

AFL’s P/S Ratio of 3.62 is in the upper echelon for the Insurance industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

ARCC

5.25

Capital Markets Industry

Max
14.49
Q3
7.41
Median
4.68
Q1
2.25
Min
0.04

ARCC’s P/S Ratio of 5.25 aligns with the market consensus for the Capital Markets industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AFL vs. ARCC: A comparison of their Price-to-Sales Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Price-to-Book Ratio (MRQ)

AFL

2.10

Insurance Industry

Max
4.37
Q3
2.48
Median
1.68
Q1
1.19
Min
0.19

AFL’s P/B Ratio of 2.10 is within the conventional range for the Insurance industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

ARCC

1.09

Capital Markets Industry

Max
9.48
Q3
4.94
Median
2.42
Q1
1.21
Min
0.38

ARCC’s P/B Ratio of 1.09 is in the lower quartile for the Capital Markets industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

AFL vs. ARCC: A comparison of their Price-to-Book Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Valuation at a Glance

SymbolAFLARCC
Price-to-Earnings Ratio (TTM)23.6511.68
Price-to-Sales Ratio (TTM)3.625.25
Price-to-Book Ratio (MRQ)2.101.09
Price-to-Free Cash Flow Ratio (TTM)22.2517.21