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

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

Company Profile

SymbolARCCBRO
Company NameAres Capital CorporationBrown & Brown, Inc.
CountryUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS IndustryCapital MarketsInsurance
Market Capitalization14.19 billion USD31.15 billion USD
ExchangeNasdaqGSNYSE
Listing DateOctober 5, 2004February 11, 1981
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of ARCC and BRO 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. BRO: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolARCCBRO
5-Day Price Return-1.42%0.69%
13-Week Price Return-9.90%-12.40%
26-Week Price Return-9.74%-23.91%
52-Week Price Return-3.64%-9.74%
Month-to-Date Return-1.42%0.69%
Year-to-Date Return-8.09%-7.43%
10-Day Avg. Volume6.00M2.23M
3-Month Avg. Volume4.06M3.43M
3-Month Volatility15.35%25.72%
Beta0.640.85

Profitability

Return on Equity (TTM)

ARCC

10.05%

Capital Markets Industry

Max
38.97%
Q3
22.24%
Median
13.52%
Q1
8.61%
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.

BRO

12.86%

Insurance Industry

Max
30.96%
Q3
18.76%
Median
14.22%
Q1
10.34%
Min
1.73%

BRO’s Return on Equity of 12.86% is on par with the norm for the Insurance industry, indicating its profitability relative to shareholder equity is typical for the sector.

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

Net Profit Margin (TTM)

ARCC

44.94%

Capital Markets Industry

Max
69.91%
Q3
37.24%
Median
24.30%
Q1
13.06%
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.

BRO

19.89%

Insurance Industry

Max
26.78%
Q3
14.69%
Median
9.87%
Q1
6.59%
Min
-3.51%

A Net Profit Margin of 19.89% places BRO in the upper quartile for the Insurance industry, signifying strong profitability and more effective cost management than most of its peers.

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

Operating Profit Margin (TTM)

ARCC

48.72%

Capital Markets Industry

Max
84.86%
Q3
47.16%
Median
32.23%
Q1
18.65%
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.

BRO

30.11%

Insurance Industry

Max
34.52%
Q3
20.17%
Median
14.46%
Q1
9.62%
Min
-2.51%

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

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

Profitability at a Glance

SymbolARCCBRO
Return on Equity (TTM)10.05%12.86%
Return on Assets (TTM)4.80%5.19%
Net Profit Margin (TTM)44.94%19.89%
Operating Profit Margin (TTM)48.72%30.11%
Gross Profit Margin (TTM)50.28%--

Financial Strength

Current Ratio (MRQ)

ARCC

1.07

Capital Markets Industry

Max
3.37
Q3
1.81
Median
1.01
Q1
0.56
Min
0.04

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

BRO

2.75

Insurance Industry

Max
2.97
Q3
1.37
Median
0.54
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 vs. BRO: A comparison of their Current Ratio (MRQ) against their respective Capital Markets and Insurance industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ARCC

1.01

Capital Markets Industry

Max
6.52
Q3
2.79
Median
0.96
Q1
0.28
Min
0.00

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

BRO

0.65

Insurance Industry

Max
1.25
Q3
0.65
Median
0.34
Q1
0.23
Min
0.00

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

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

Interest Coverage Ratio (TTM)

ARCC

2.48

Capital Markets Industry

Max
107.59
Q3
48.41
Median
10.85
Q1
4.56
Min
-36.26

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

BRO

7.75

Insurance Industry

Max
43.68
Q3
21.45
Median
9.67
Q1
3.55
Min
-5.73

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

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

Financial Strength at a Glance

SymbolARCCBRO
Current Ratio (MRQ)1.072.75
Quick Ratio (MRQ)1.072.65
Debt-to-Equity Ratio (MRQ)1.010.65
Interest Coverage Ratio (TTM)2.487.75

Growth

Revenue Growth

ARCC vs. BRO: 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. BRO: 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

8.55%

Capital Markets Industry

Max
9.02%
Q3
4.54%
Median
2.55%
Q1
1.27%
Min
0.00%

With a Dividend Yield of 8.55%, ARCC offers a more attractive income stream than most of its peers in the Capital Markets industry, signaling a strong commitment to shareholder returns.

BRO

0.53%

Insurance Industry

Max
9.80%
Q3
5.18%
Median
3.58%
Q1
2.07%
Min
0.00%

BRO’s Dividend Yield of 0.53% is in the lower quartile for the Insurance industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

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

Dividend Payout Ratio (TTM)

ARCC

89.80%

Capital Markets Industry

Max
199.38%
Q3
99.28%
Median
60.67%
Q1
32.00%
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.

BRO

16.40%

Insurance Industry

Max
169.40%
Q3
85.57%
Median
53.26%
Q1
23.68%
Min
0.00%

BRO’s Dividend Payout Ratio of 16.40% is in the lower quartile for the Insurance industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

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

Dividend at a Glance

SymbolARCCBRO
Dividend Yield (TTM)8.55%0.53%
Dividend Payout Ratio (TTM)89.80%16.40%

Valuation

Price-to-Earnings Ratio (TTM)

ARCC

10.50

Capital Markets Industry

Max
51.69
Q3
29.42
Median
17.58
Q1
12.55
Min
5.59

In the lower quartile for the Capital Markets industry, ARCC’s P/E Ratio of 10.50 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

BRO

30.87

Insurance Industry

Max
30.75
Q3
18.11
Median
12.67
Q1
9.66
Min
2.87

At 30.87, BRO’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Insurance 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. BRO: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Capital Markets and Insurance industry benchmarks.

Price-to-Sales Ratio (TTM)

ARCC

4.72

Capital Markets Industry

Max
14.65
Q3
7.29
Median
4.53
Q1
2.26
Min
0.04

ARCC’s P/S Ratio of 4.72 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.

BRO

6.14

Insurance Industry

Max
3.41
Q3
1.88
Median
1.22
Q1
0.80
Min
0.23

With a P/S Ratio of 6.14, BRO trades at a valuation that eclipses even the highest in the Insurance industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

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

Price-to-Book Ratio (MRQ)

ARCC

1.09

Capital Markets Industry

Max
10.83
Q3
5.12
Median
2.66
Q1
1.19
Min
0.37

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.

BRO

3.15

Insurance Industry

Max
4.57
Q3
2.56
Median
1.88
Q1
1.20
Min
0.17

BRO’s P/B Ratio of 3.15 is in the upper tier for the Insurance 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. BRO: A comparison of their Price-to-Book Ratio (MRQ) against their respective Capital Markets and Insurance industry benchmarks.

Valuation at a Glance

SymbolARCCBRO
Price-to-Earnings Ratio (TTM)10.5030.87
Price-to-Sales Ratio (TTM)4.726.14
Price-to-Book Ratio (MRQ)1.093.15
Price-to-Free Cash Flow Ratio (TTM)15.4824.57