ARCC vs. CINF: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARCC and CINF, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ARCC’s market capitalization stands at 15.56 billion USD, while CINF’s is 23.23 billion USD, indicating their market valuations are broadly comparable.
With betas of 0.73 for ARCC and 0.79 for CINF, both stocks show similar sensitivity to overall market movements.
| Symbol | ARCC | CINF |
|---|---|---|
| Company Name | Ares Capital Corporation | Cincinnati Financial Corporation |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Insurance - Property & Casualty |
| CEO | Kort Schnabel | Stephen Michael Spray |
| Price | 22.41 USD | 148.59 USD |
| Market Cap | 15.56 billion USD | 23.23 billion USD |
| Beta | 0.73 | 0.79 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | October 5, 2004 | March 17, 1980 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ARCC and CINF 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.
Profitability
Return on Equity
ARCC
11.03%
Asset Management Industry
- Max
- 34.25%
- Q3
- 18.22%
- Median
- 11.24%
- Q1
- 5.81%
- Min
- -5.72%
ARCC’s Return on Equity of 11.03% is on par with the norm for the Asset Management industry, indicating its profitability relative to shareholder equity is typical for the sector.
CINF
10.67%
Insurance - Property & Casualty Industry
- Max
- 28.14%
- Q3
- 17.51%
- Median
- 12.75%
- Q1
- 8.26%
- Min
- 0.61%
CINF’s Return on Equity of 10.67% is on par with the norm for the Insurance - Property & Casualty industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
ARCC
208.60%
Asset Management Industry
- Max
- 42.18%
- Q3
- 20.06%
- Median
- 8.68%
- Q1
- 3.13%
- Min
- -16.42%
ARCC’s Return on Invested Capital of 208.60% is exceptionally high, placing it well beyond the typical range for the Asset Management industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
CINF
144.40%
Insurance - Property & Casualty Industry
- Max
- 21.89%
- Q3
- 10.09%
- Median
- 3.90%
- Q1
- 0.89%
- Min
- -7.26%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Property & Casualty industry.
Net Profit Margin
ARCC
67.48%
Asset Management Industry
- Max
- 91.66%
- Q3
- 57.81%
- Median
- 29.48%
- Q1
- 15.70%
- Min
- -27.65%
A Net Profit Margin of 67.48% places ARCC in the upper quartile for the Asset Management industry, signifying strong profitability and more effective cost management than most of its peers.
CINF
13.19%
Insurance - Property & Casualty Industry
- Max
- 21.98%
- Q3
- 13.09%
- Median
- 9.18%
- Q1
- 6.10%
- Min
- 2.13%
A Net Profit Margin of 13.19% places CINF in the upper quartile for the Insurance - Property & Casualty industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
ARCC
91.13%
Asset Management Industry
- Max
- 99.76%
- Q3
- 78.28%
- Median
- 34.76%
- Q1
- 21.75%
- Min
- -48.25%
An Operating Profit Margin of 91.13% places ARCC in the upper quartile for the Asset Management industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
CINF
16.33%
Insurance - Property & Casualty Industry
- Max
- 31.70%
- Q3
- 17.32%
- Median
- 12.57%
- Q1
- 7.38%
- Min
- 4.31%
CINF’s Operating Profit Margin of 16.33% is around the midpoint for the Insurance - Property & Casualty industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ARCC | CINF |
|---|---|---|
| Return on Equity (TTM) | 11.03% | 10.67% |
| Return on Assets (TTM) | 5.08% | 3.88% |
| Return on Invested Capital (TTM) | 208.60% | 144.40% |
| Net Profit Margin (TTM) | 67.48% | 13.19% |
| Operating Profit Margin (TTM) | 91.13% | 16.33% |
| Gross Profit Margin (TTM) | 95.92% | 100.00% |
Financial Strength
Current Ratio
ARCC
--
Asset Management Industry
- Max
- 12.44
- Q3
- 5.76
- Median
- 3.04
- Q1
- 1.03
- Min
- 0.01
Current Ratio data for ARCC is currently unavailable.
CINF
40.40
Insurance - Property & Casualty Industry
- Max
- 51.52
- Q3
- 30.84
- Median
- 20.50
- Q1
- 6.61
- Min
- 0.41
CINF’s Current Ratio of 40.40 is in the upper quartile for the Insurance - Property & Casualty industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio
ARCC
--
Asset Management Industry
- Max
- 2.62
- Q3
- 1.42
- Median
- 0.76
- Q1
- 0.34
- Min
- 0.01
Debt-to-Equity Ratio data for ARCC is currently unavailable.
CINF
0.06
Insurance - Property & Casualty Industry
- Max
- 0.58
- Q3
- 0.36
- Median
- 0.27
- Q1
- 0.14
- Min
- 0.01
Falling into the lower quartile for the Insurance - Property & Casualty industry, CINF’s Debt-to-Equity Ratio of 0.06 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio
ARCC
3.77
Asset Management Industry
- Max
- 13.30
- Q3
- 6.30
- Median
- 2.71
- Q1
- 1.00
- Min
- -6.91
ARCC’s Interest Coverage Ratio of 3.77 is positioned comfortably within the norm for the Asset Management industry, indicating a standard and healthy capacity to cover its interest payments.
CINF
33.79
Insurance - Property & Casualty Industry
- Max
- 39.40
- Q3
- 22.24
- Median
- 12.38
- Q1
- 6.68
- Min
- -12.40
CINF’s Interest Coverage Ratio of 33.79 is in the upper quartile for the Insurance - Property & Casualty industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ARCC | CINF |
|---|---|---|
| Current Ratio (TTM) | -- | 40.40 |
| Quick Ratio (TTM) | -- | 40.40 |
| Debt-to-Equity Ratio (TTM) | -- | 0.06 |
| Debt-to-Asset Ratio (TTM) | -- | 0.02 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.35 | -0.07 |
| Interest Coverage Ratio (TTM) | 3.77 | 33.79 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARCC and CINF. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ARCC
8.57%
Asset Management Industry
- Max
- 26.09%
- Q3
- 11.60%
- Median
- 6.37%
- Q1
- 2.75%
- Min
- 0.00%
ARCC’s Dividend Yield of 8.57% is consistent with its peers in the Asset Management industry, providing a dividend return that is standard for its sector.
CINF
2.26%
Insurance - Property & Casualty Industry
- Max
- 8.17%
- Q3
- 3.10%
- Median
- 1.79%
- Q1
- 0.00%
- Min
- 0.00%
CINF’s Dividend Yield of 2.26% is consistent with its peers in the Insurance - Property & Casualty industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
ARCC
81.85%
Asset Management Industry
- Max
- 1,034.88%
- Q3
- 127.70%
- Median
- 75.15%
- Q1
- 34.21%
- Min
- 0.00%
ARCC’s Dividend Payout Ratio of 81.85% is within the typical range for the Asset Management industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
CINF
34.49%
Insurance - Property & Casualty Industry
- Max
- 115.20%
- Q3
- 35.27%
- Median
- 22.19%
- Q1
- 3.16%
- Min
- 0.00%
CINF’s Dividend Payout Ratio of 34.49% is within the typical range for the Insurance - Property & Casualty industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ARCC | CINF |
|---|---|---|
| Dividend Yield (TTM) | 8.57% | 2.26% |
| Dividend Payout Ratio (TTM) | 81.85% | 34.49% |
Valuation
Price-to-Earnings Ratio
ARCC
10.53
Asset Management Industry
- Max
- 38.72
- Q3
- 23.40
- Median
- 11.45
- Q1
- 8.80
- Min
- 1.54
ARCC’s P/E Ratio of 10.53 is within the middle range for the Asset Management industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
CINF
16.06
Insurance - Property & Casualty Industry
- Max
- 35.83
- Q3
- 23.28
- Median
- 14.49
- Q1
- 11.91
- Min
- 4.47
CINF’s P/E Ratio of 16.06 is within the middle range for the Insurance - Property & Casualty industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
ARCC
-7.92
Asset Management Industry
- Max
- 6.38
- Q3
- 3.23
- Median
- 1.55
- Q1
- 0.89
- Min
- 0.02
ARCC has a negative Forward PEG Ratio of -7.92. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
CINF
0.78
Insurance - Property & Casualty Industry
- Max
- 2.53
- Q3
- 1.90
- Median
- 1.33
- Q1
- 0.86
- Min
- 0.01
In the lower quartile for the Insurance - Property & Casualty industry, CINF’s Forward PEG Ratio of 0.78 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
Price-to-Sales Ratio
ARCC
7.30
Asset Management Industry
- Max
- 13.75
- Q3
- 7.92
- Median
- 4.87
- Q1
- 3.51
- Min
- 0.02
ARCC’s P/S Ratio of 7.30 aligns with the market consensus for the Asset Management industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
CINF
2.12
Insurance - Property & Casualty Industry
- Max
- 3.76
- Q3
- 2.39
- Median
- 1.80
- Q1
- 1.01
- Min
- 0.50
The P/S Ratio is often not a primary valuation tool in the Insurance - Property & Casualty industry.
Price-to-Book Ratio
ARCC
1.11
Asset Management Industry
- Max
- 5.33
- Q3
- 2.75
- Median
- 1.06
- Q1
- 0.87
- Min
- 0.00
The P/B Ratio is often not a primary valuation metric for the Asset Management industry.
CINF
1.69
Insurance - Property & Casualty Industry
- Max
- 5.34
- Q3
- 2.95
- Median
- 1.92
- Q1
- 1.31
- Min
- 0.52
CINF’s P/B Ratio of 1.69 is within the conventional range for the Insurance - Property & Casualty 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.
Valuation at a Glance
| Symbol | ARCC | CINF |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 10.53 | 16.06 |
| Forward PEG Ratio (TTM) | -7.92 | 0.78 |
| Price-to-Sales Ratio (P/S, TTM) | 7.30 | 2.12 |
| Price-to-Book Ratio (P/B, TTM) | 1.11 | 1.69 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -6.47 | 8.97 |
| EV-to-EBITDA (TTM) | 8.15 | 11.70 |
| EV-to-Sales (TTM) | 7.00 | 2.11 |