ARCC vs. BRK.B: Ares Capital vs. Berkshire Hathaway Stock Comparison
How do Ares Capital (ARCC) and Berkshire Hathaway (BRK.B) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Ares Capital (ARCC) and Berkshire Hathaway (BRK.B) both fall under the Financial Services industry group, but ARCC is classified in Capital Markets while BRK.B is classified in Financial Services.
| Profile Item | ARCC | BRK.B |
|---|---|---|
| Name | Ares Capital Corp. | Berkshire Hathaway Inc. Class B |
| Country/Region | United States | United States |
| GICS Sector | Financials | Financials |
| GICS Industry Group | Financial Services | Financial Services |
| GICS Industry | Capital Markets | Financial Services |
| GICS Sub-Industry | Asset Management & Custody Banks | Multi-Sector Holdings |
| Market Capitalization | 13.82 billion USD | 1,222.11 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | October 5, 2004 | May 9, 1996 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | ARCC | BRK.B |
|---|---|---|
| Total Return (1Y) | 5.40% | 14.06% |
| Total Return (3Y, Annualized) | 9.48% | 17.80% |
| Total Return (5Y, Annualized) | 8.26% | 14.73% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | ARCC | BRK.B |
|---|---|---|
| Volatility (1Y, Annualized) | 18.97% | 15.13% |
| Beta (5Y) | 0.59 | 0.56 |
| Max Drawdown (5Y) | -21.76% | -26.58% |
| Avg. Volume (3M) | 4.45M | 4.56M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | ARCC | BRK.B |
|---|---|---|
| Sharpe Ratio (1Y) | 0.06 | 0.65 |
| Sortino Ratio (1Y) | 0.09 | 0.97 |
Profitability
ROE (TTM)
Both Ares Capital (ARCC) at 6.19% and Berkshire Hathaway (BRK.B) at 12.12% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.
ARCC
Financial Services industry group
6.19%
- Max
- 44.78%
- Q3
- 21.85%
- Median
- 12.91%
- ARCC
- 6.19%
- Q1
- 4.48%
- Min
- -18.71%
BRK.B
Financial Services industry group
12.12%
- Max
- 44.78%
- Q3
- 21.85%
- Median
- 12.91%
- BRK.B
- 12.12%
- Q1
- 4.48%
- Min
- -18.71%
Net Margin (TTM)
Ares Capital (ARCC) at 28.35% retains a top-quartile share of revenue as profit, ahead of Berkshire Hathaway (BRK.B) at 22.30%, which keeps about the industry-typical share.
ARCC
Financial Services industry group
28.35%
- Max
- 62.84%
- ARCC
- 28.35%
- Q3
- 28.05%
- Median
- 15.36%
- Q1
- 4.82%
- Min
- -28.52%
BRK.B
Financial Services industry group
22.30%
- Max
- 62.84%
- Q3
- 28.05%
- BRK.B
- 22.30%
- Median
- 15.36%
- Q1
- 4.82%
- Min
- -28.52%
Operating Margin (TTM)
Ares Capital (ARCC) at 72.74% operates in the top operating margin quartile, ahead of Berkshire Hathaway (BRK.B) at 32.56%, which runs around its industry’s norm.
ARCC
Financial Services industry group
72.74%
- Max
- 107.33%
- ARCC
- 72.74%
- Q3
- 55.90%
- Median
- 30.09%
- Q1
- 14.60%
- Min
- -44.34%
BRK.B
Financial Services industry group
32.56%
- Max
- 107.33%
- Q3
- 55.90%
- BRK.B
- 32.56%
- Median
- 30.09%
- Q1
- 14.60%
- Min
- -44.34%
Profitability Metrics
| Metric | ARCC | BRK.B |
|---|---|---|
| ROE (TTM) | 6.19% | 12.12% |
| ROA (TTM) | 4.78% | 6.01% |
| Net Margin (TTM) | 28.35% | 22.30% |
| Operating Margin (TTM) | 72.74% | 32.56% |
| Gross Margin (TTM) | -- | -- |
Growth
Revenue Growth
Both Ares Capital (ARCC) at -12.08% and Berkshire Hathaway (BRK.B) at -3.23% post bottom-quartile revenue growth versus peers, pointing to weaker demand or pricing momentum than typical rivals.
EPS Growth
Ares Capital (ARCC) at -23.77% is around its peer norm for EPS growth, while Berkshire Hathaway (BRK.B) at -24.78% drops into the bottom quartile, signaling weaker earnings momentum.
Growth Metrics
| Metric | ARCC | BRK.B |
|---|---|---|
| Revenue Growth (YoY) | -12.08% | -3.23% |
| Revenue Growth (3Y CAGR) | 26.67% | 20.59% |
| EPS Growth (YoY) | -23.77% | -24.78% |
| EPS Growth (3Y CAGR) | 16.05% | -- |
Financial Strength
Current Ratio (MRQ)
current ratio doesn’t apply on either side: Ares Capital (ARCC) in Financial Services and Berkshire Hathaway (BRK.B) in Financial Services both report balance sheets without a current/non-current split, so their short-term liquidity is better judged through regulatory and funding measures.
Debt / Equity (MRQ)
debt-to-equity ratio is set aside for both: Ares Capital (ARCC) in Financial Services and Berkshire Hathaway (BRK.B) in Financial Services run businesses where balance-sheet leverage is part of the model, so capital-adequacy and funding measures are the better gauges of balance-sheet risk.
Financial Strength Metrics
| Metric | ARCC | BRK.B |
|---|---|---|
| Current Ratio (MRQ) | -- | -- |
| Debt / Equity (MRQ) | -- | -- |
| Net Debt / EBITDA | -- | -- |
Dividends
Dividend Yield (TTM)
Berkshire Hathaway (BRK.B) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Ares Capital (ARCC) reports a yield of 9.92%, ranking against industry peers normally.
ARCC
Financial Services industry group
9.92%
- ARCC
- 9.92%
- Max
- 9.77%
- Q3
- 3.92%
- Median
- 1.09%
- Q1
- 0.00%
- Min
- 0.00%
BRK.B
Financial Services industry group
0.00%
- Max
- 9.77%
- Q3
- 3.92%
- Median
- 1.09%
- BRK.B
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Ares Capital (ARCC) reports payout ratio above 100% at 157.38%, meaning dividends exceeded current-period earnings; Berkshire Hathaway (BRK.B) pays no dividend (payout 0.00%).
ARCC
Financial Services industry group
157.38%
- Max
- 241.07%
- ARCC
- 157.38%
- Q3
- 97.36%
- Median
- 25.77%
- Q1
- 0.00%
- Min
- 0.00%
BRK.B
Financial Services industry group
0.00%
- Max
- 241.07%
- Q3
- 97.36%
- Median
- 25.77%
- BRK.B
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | ARCC | BRK.B |
|---|---|---|
| Dividend Yield (TTM) | 9.92% | 0.00% |
| Dividend Payout Ratio (TTM) | 157.38% | 0.00% |
Valuation
P/E Ratio (TTM)
Both Ares Capital (ARCC) at 15.68 and Berkshire Hathaway (BRK.B) at 14.36 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.
ARCC
Financial Services industry group
15.68
- Max
- 45.85
- Q3
- 24.64
- ARCC
- 15.68
- Median
- 15.37
- Q1
- 9.68
- Min
- 0.16
BRK.B
Financial Services industry group
14.36
- Max
- 45.85
- Q3
- 24.64
- Median
- 15.37
- BRK.B
- 14.36
- Q1
- 9.68
- Min
- 0.16
P/S Ratio (TTM)
On P/S ratio, both Ares Capital (ARCC) at 4.48 and Berkshire Hathaway (BRK.B) at 3.18 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.
ARCC
Financial Services industry group
4.48
- Max
- 9.23
- Q3
- 4.57
- ARCC
- 4.48
- Median
- 2.72
- Q1
- 1.28
- Min
- -0.55
BRK.B
Financial Services industry group
3.18
- Max
- 9.23
- Q3
- 4.57
- BRK.B
- 3.18
- Median
- 2.72
- Q1
- 1.28
- Min
- -0.55
P/B Ratio (MRQ)
Berkshire Hathaway (BRK.B) at 0.00 sits in the lower P/B ratio quartile against book while Ares Capital (ARCC) at 0.99 is valued near its industry’s middle — BRK.B is cheaper on assets, though weigh it against ROE and asset quality.
ARCC
Financial Services industry group
0.99
- Max
- 7.79
- Q3
- 3.63
- Median
- 1.57
- ARCC
- 0.99
- Q1
- 0.81
- Min
- -0.39
BRK.B
Financial Services industry group
0.00
- Max
- 7.79
- Q3
- 3.63
- Median
- 1.57
- Q1
- 0.81
- BRK.B
- 0.00
- Min
- -0.39
Valuation Metrics
| Metric | ARCC | BRK.B |
|---|---|---|
| P/E Ratio (TTM) | 15.68 | 14.36 |
| P/S Ratio (TTM) | 4.48 | 3.18 |
| P/B Ratio (MRQ) | 0.99 | 0.00 |
| Free Cash Flow Yield (TTM) | -- | -- |