ARCC vs. COF: Ares Capital vs. Capital One Financial Stock Comparison
How do Ares Capital (ARCC) and Capital One Financial (COF) 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 Capital One Financial (COF) both fall under the Financial Services industry group, but ARCC is classified in Capital Markets while COF is classified in Consumer Finance.
| Profile Item | ARCC | COF |
|---|---|---|
| Name | Ares Capital Corp. | Capital One Financial Corp. |
| Country/Region | United States | United States |
| GICS Sector | Financials | Financials |
| GICS Industry Group | Financial Services | Financial Services |
| GICS Industry | Capital Markets | Consumer Finance |
| GICS Sub-Industry | Asset Management & Custody Banks | Consumer Finance |
| Market Capitalization | 13.82 billion USD | 121.43 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | October 5, 2004 | November 16, 1994 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | ARCC | COF |
|---|---|---|
| Total Return (1Y) | 5.40% | -5.89% |
| Total Return (3Y, Annualized) | 9.48% | 26.49% |
| Total Return (5Y, Annualized) | 8.26% | 7.24% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | ARCC | COF |
|---|---|---|
| Volatility (1Y, Annualized) | 18.97% | 31.21% |
| Beta (5Y) | 0.59 | 1.09 |
| Max Drawdown (5Y) | -21.76% | -45.56% |
| Avg. Volume (3M) | 4.45M | 3.66M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | ARCC | COF |
|---|---|---|
| Sharpe Ratio (1Y) | 0.06 | -0.33 |
| Sortino Ratio (1Y) | 0.09 | -0.43 |
Profitability
ROE (TTM)
Both Ares Capital (ARCC) at 6.19% and Capital One Financial (COF) at 9.39% 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%
COF
Financial Services industry group
9.39%
- Max
- 44.78%
- Q3
- 21.85%
- Median
- 12.91%
- COF
- 9.39%
- 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 Capital One Financial (COF) at 22.23%, 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%
COF
Financial Services industry group
22.23%
- Max
- 62.84%
- Q3
- 28.05%
- COF
- 22.23%
- 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 Capital One Financial (COF) at 37.83%, 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%
COF
Financial Services industry group
37.83%
- Max
- 107.33%
- Q3
- 55.90%
- COF
- 37.83%
- Median
- 30.09%
- Q1
- 14.60%
- Min
- -44.34%
Profitability Metrics
| Metric | ARCC | COF |
|---|---|---|
| ROE (TTM) | 6.19% | 9.39% |
| ROA (TTM) | 4.78% | 1.57% |
| Net Margin (TTM) | 28.35% | 22.23% |
| Operating Margin (TTM) | 72.74% | 37.83% |
| Gross Margin (TTM) | -- | -- |
Growth
Revenue Growth
Capital One Financial (COF) at 36.62% sits in the top revenue growth quartile, while Ares Capital (ARCC) at -12.08% is in the bottom quartile, showing a clear gap in revenue momentum.
EPS Growth
Ares Capital (ARCC) at -23.77% is around its peer norm for EPS growth, while Capital One Financial (COF) at -65.23% drops into the bottom quartile, signaling weaker earnings momentum.
Growth Metrics
| Metric | ARCC | COF |
|---|---|---|
| Revenue Growth (YoY) | -12.08% | 36.62% |
| Revenue Growth (3Y CAGR) | 26.67% | 15.98% |
| EPS Growth (YoY) | -23.77% | -65.23% |
| EPS Growth (3Y CAGR) | 16.05% | -39.18% |
Financial Strength
Current Ratio (MRQ)
current ratio doesn’t apply on either side: Ares Capital (ARCC) in Financial Services and Capital One Financial (COF) 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 Capital One Financial (COF) 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 | COF |
|---|---|---|
| Current Ratio (MRQ) | -- | -- |
| Debt / Equity (MRQ) | -- | -- |
| Net Debt / EBITDA | -- | -- |
Dividends
Dividend Yield (TTM)
Capital One Financial (COF) at 1.57% pays an industry-typical yield; Ares Capital (ARCC) at 9.92% is above its entire peer range — the higher number, but one that calls for a look at payout sustainability before treating it as an advantage.
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%
COF
Financial Services industry group
1.57%
- Max
- 9.77%
- Q3
- 3.92%
- COF
- 1.57%
- Median
- 1.09%
- 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 and sustainability needs extra context. Meanwhile Capital One Financial (COF) reports 19.61%, ranking against industry peers normally.
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%
COF
Financial Services industry group
19.61%
- Max
- 241.07%
- Q3
- 97.36%
- Median
- 25.77%
- COF
- 19.61%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | ARCC | COF |
|---|---|---|
| Dividend Yield (TTM) | 9.92% | 1.57% |
| Dividend Payout Ratio (TTM) | 157.38% | 19.61% |
Valuation
P/E Ratio (TTM)
Both Ares Capital (ARCC) at 15.68 and Capital One Financial (COF) at 12.37 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
COF
Financial Services industry group
12.37
- Max
- 45.85
- Q3
- 24.64
- Median
- 15.37
- COF
- 12.37
- Q1
- 9.68
- Min
- 0.16
P/S Ratio (TTM)
On P/S ratio, both Ares Capital (ARCC) at 4.48 and Capital One Financial (COF) at 2.48 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
COF
Financial Services industry group
2.48
- Max
- 9.23
- Q3
- 4.57
- Median
- 2.72
- COF
- 2.48
- Q1
- 1.28
- Min
- -0.55
P/B Ratio (MRQ)
On P/B ratio, both Ares Capital (ARCC) at 0.99 and Capital One Financial (COF) at 1.15 are valued close to their industries’ norm against book — neither stands out from peers.
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
COF
Financial Services industry group
1.15
- Max
- 7.79
- Q3
- 3.63
- Median
- 1.57
- COF
- 1.15
- Q1
- 0.81
- Min
- -0.39
Valuation Metrics
| Metric | ARCC | COF |
|---|---|---|
| P/E Ratio (TTM) | 15.68 | 12.37 |
| P/S Ratio (TTM) | 4.48 | 2.48 |
| P/B Ratio (MRQ) | 0.99 | 1.15 |
| Free Cash Flow Yield (TTM) | -- | -- |