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

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

Company Profile

SymbolARCCBAM
Company NameAres Capital CorporationBrookfield Asset Management Ltd.
CountryUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS IndustryCapital MarketsCapital Markets
Market Capitalization15.72 billion USD96.22 billion USD
ExchangeNasdaqGSNYSE
Listing DateOctober 5, 2004December 1, 2022
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of ARCC and BAM 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.

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

Historical Performance at a Glance

SymbolARCCBAM
5-Day Price Return-1.63%-4.41%
13-Week Price Return1.73%0.22%
26-Week Price Return-3.42%3.13%
52-Week Price Return6.96%46.27%
Month-to-Date Return-1.50%-3.73%
Year-to-Date Return1.83%9.56%
10-Day Avg. Volume3.42M1.56M
3-Month Avg. Volume3.93M2.18M
3-Month Volatility13.02%26.69%
Beta0.761.92

Profitability

Return on Equity (TTM)

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.

BAM

20.67%

Capital Markets Industry

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

BAM’s Return on Equity of 20.67% is on par with the norm for the Capital Markets industry, indicating its profitability relative to shareholder equity is typical for the sector.

ARCC vs. BAM: A comparison of their Return on Equity (TTM) against the Capital Markets industry benchmark.

Net Profit Margin (TTM)

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.

BAM

57.13%

Capital Markets Industry

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

A Net Profit Margin of 57.13% places BAM in the upper quartile for the Capital Markets industry, signifying strong profitability and more effective cost management than most of its peers.

ARCC vs. BAM: A comparison of their Net Profit Margin (TTM) against the Capital Markets industry benchmark.

Operating Profit Margin (TTM)

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.

BAM

51.12%

Capital Markets Industry

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

An Operating Profit Margin of 51.12% places BAM 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.

ARCC vs. BAM: A comparison of their Operating Profit Margin (TTM) against the Capital Markets industry benchmark.

Profitability at a Glance

SymbolARCCBAM
Return on Equity (TTM)10.05%20.67%
Return on Assets (TTM)4.80%14.12%
Net Profit Margin (TTM)44.94%57.13%
Operating Profit Margin (TTM)48.72%51.12%
Gross Profit Margin (TTM)50.28%--

Financial Strength

Current Ratio (MRQ)

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.

BAM

1.31

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.

ARCC vs. BAM: A comparison of their Current Ratio (MRQ) against the Capital Markets industry benchmark.

Debt-to-Equity Ratio (MRQ)

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.

BAM

0.22

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.

ARCC vs. BAM: A comparison of their Debt-to-Equity Ratio (MRQ) against the Capital Markets industry benchmark.

Interest Coverage Ratio (TTM)

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.

BAM

20.09

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.

ARCC vs. BAM: A comparison of their Interest Coverage Ratio (TTM) against the Capital Markets industry benchmark.

Financial Strength at a Glance

SymbolARCCBAM
Current Ratio (MRQ)1.071.31
Quick Ratio (MRQ)1.071.31
Debt-to-Equity Ratio (MRQ)1.010.22
Interest Coverage Ratio (TTM)2.4820.09

Growth

Revenue Growth

ARCC vs. BAM: 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

ARCC vs. BAM: 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)

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.

BAM

1.81%

Capital Markets Industry

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

BAM’s Dividend Yield of 1.81% is consistent with its peers in the Capital Markets industry, providing a dividend return that is standard for its sector.

ARCC vs. BAM: A comparison of their Dividend Yield (TTM) against the Capital Markets industry benchmark.

Dividend Payout Ratio (TTM)

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.

BAM

122.97%

Capital Markets Industry

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

BAM’s Dividend Payout Ratio of 122.97% is in the upper quartile for the Capital Markets industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

ARCC vs. BAM: A comparison of their Dividend Payout Ratio (TTM) against the Capital Markets industry benchmark.

Dividend at a Glance

SymbolARCCBAM
Dividend Yield (TTM)7.69%1.81%
Dividend Payout Ratio (TTM)89.80%122.97%

Valuation

Price-to-Earnings Ratio (TTM)

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.

BAM

68.12

Capital Markets Industry

Max
58.89
Q3
31.00
Median
18.54
Q1
12.09
Min
5.24

At 68.12, BAM’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Capital Markets industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ARCC vs. BAM: A comparison of their Price-to-Earnings Ratio (TTM) against the Capital Markets industry benchmark.

Price-to-Sales Ratio (TTM)

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.

BAM

38.92

Capital Markets Industry

Max
14.49
Q3
7.41
Median
4.68
Q1
2.25
Min
0.04

With a P/S Ratio of 38.92, BAM trades at a valuation that eclipses even the highest in the Capital Markets industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ARCC vs. BAM: A comparison of their Price-to-Sales Ratio (TTM) against the Capital Markets industry benchmark.

Price-to-Book Ratio (MRQ)

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.

BAM

8.76

Capital Markets Industry

Max
9.48
Q3
4.94
Median
2.42
Q1
1.21
Min
0.38

BAM’s P/B Ratio of 8.76 is in the upper tier for the Capital Markets industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

ARCC vs. BAM: A comparison of their Price-to-Book Ratio (MRQ) against the Capital Markets industry benchmark.

Valuation at a Glance

SymbolARCCBAM
Price-to-Earnings Ratio (TTM)11.6868.12
Price-to-Sales Ratio (TTM)5.2538.92
Price-to-Book Ratio (MRQ)1.098.76
Price-to-Free Cash Flow Ratio (TTM)17.2199.35