ARCC vs. ERIE: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARCC and ERIE, 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 ERIE’s is 16.02 billion USD, indicating their market valuations are broadly comparable.
ARCC’s beta of 0.73 points to significantly higher volatility compared to ERIE (beta: 0.36), suggesting ARCC has greater potential for both gains and losses relative to market movements.
| Symbol | ARCC | ERIE |
|---|---|---|
| Company Name | Ares Capital Corporation | Erie Indemnity Company |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Insurance - Brokers |
| CEO | Kort Schnabel | Timothy Gerard NeCastro C.I.C., CPA |
| Price | 22.41 USD | 346.94 USD |
| Market Cap | 15.56 billion USD | 16.02 billion USD |
| Beta | 0.73 | 0.36 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | October 5, 2004 | October 2, 1995 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ARCC and ERIE 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.
ERIE
31.37%
Insurance - Brokers Industry
- Max
- 40.40%
- Q3
- 30.52%
- Median
- 22.48%
- Q1
- 4.38%
- Min
- -5.38%
In the upper quartile for the Insurance - Brokers industry, ERIE’s Return on Equity of 31.37% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
ERIE
26.02%
Insurance - Brokers Industry
- Max
- 11.62%
- Q3
- 11.18%
- Median
- 8.38%
- Q1
- 2.57%
- Min
- -1.51%
ERIE’s Return on Invested Capital of 26.02% is exceptionally high, placing it well beyond the typical range for the Insurance - Brokers industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
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.
ERIE
18.52%
Insurance - Brokers Industry
- Max
- 21.33%
- Q3
- 15.86%
- Median
- 10.63%
- Q1
- 1.06%
- Min
- -2.28%
A Net Profit Margin of 18.52% places ERIE in the upper quartile for the Insurance - Brokers 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.
ERIE
21.46%
Insurance - Brokers Industry
- Max
- 28.73%
- Q3
- 23.24%
- Median
- 21.46%
- Q1
- 10.89%
- Min
- 5.35%
ERIE’s Operating Profit Margin of 21.46% is around the midpoint for the Insurance - Brokers industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ARCC | ERIE |
|---|---|---|
| Return on Equity (TTM) | 11.03% | 31.37% |
| Return on Assets (TTM) | 5.08% | 20.69% |
| Return on Invested Capital (TTM) | 208.60% | 26.02% |
| Net Profit Margin (TTM) | 67.48% | 18.52% |
| Operating Profit Margin (TTM) | 91.13% | 21.46% |
| Gross Profit Margin (TTM) | 95.92% | 51.14% |
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.
ERIE
1.38
Insurance - Brokers Industry
- Max
- 1.90
- Q3
- 1.76
- Median
- 1.29
- Q1
- 1.14
- Min
- 1.05
ERIE’s Current Ratio of 1.38 aligns with the median group of the Insurance - Brokers industry, indicating that its short-term liquidity is in line with its sector 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.
ERIE
0.01
Insurance - Brokers Industry
- Max
- 4.59
- Q3
- 2.12
- Median
- 0.59
- Q1
- 0.07
- Min
- 0.01
Falling into the lower quartile for the Insurance - Brokers industry, ERIE’s Debt-to-Equity Ratio of 0.01 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.
ERIE
--
Insurance - Brokers Industry
- Max
- 29.40
- Q3
- 16.65
- Median
- 7.25
- Q1
- 4.20
- Min
- 1.60
Interest Coverage Ratio data for ERIE is currently unavailable.
Financial Strength at a Glance
| Symbol | ARCC | ERIE |
|---|---|---|
| Current Ratio (TTM) | -- | 1.38 |
| Quick Ratio (TTM) | -- | 1.38 |
| Debt-to-Equity Ratio (TTM) | -- | 0.01 |
| Debt-to-Asset Ratio (TTM) | -- | 0.00 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.35 | -0.42 |
| Interest Coverage Ratio (TTM) | 3.77 | -- |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARCC and ERIE. 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.
ERIE
1.52%
Insurance - Brokers Industry
- Max
- 2.63%
- Q3
- 1.34%
- Median
- 0.79%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.52%, ERIE offers a more attractive income stream than most of its peers in the Insurance - Brokers industry, signaling a strong commitment to shareholder returns.
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.
ERIE
39.35%
Insurance - Brokers Industry
- Max
- 45.22%
- Q3
- 39.19%
- Median
- 29.49%
- Q1
- 3.85%
- Min
- 0.00%
ERIE’s Dividend Payout Ratio of 39.35% is in the upper quartile for the Insurance - Brokers 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.
Dividend at a Glance
| Symbol | ARCC | ERIE |
|---|---|---|
| Dividend Yield (TTM) | 8.57% | 1.52% |
| Dividend Payout Ratio (TTM) | 81.85% | 39.35% |
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.
ERIE
29.54
Insurance - Brokers Industry
- Max
- 45.50
- Q3
- 35.20
- Median
- 30.00
- Q1
- 28.34
- Min
- 26.42
ERIE’s P/E Ratio of 29.54 is within the middle range for the Insurance - Brokers 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.
ERIE
2.94
Insurance - Brokers Industry
- Max
- 3.32
- Q3
- 3.00
- Median
- 2.77
- Q1
- 2.41
- Min
- 2.09
ERIE’s Forward PEG Ratio of 2.94 is within the middle range of its peers in the Insurance - Brokers industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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.
ERIE
4.83
Insurance - Brokers Industry
- Max
- 7.38
- Q3
- 5.34
- Median
- 4.27
- Q1
- 2.32
- Min
- 0.27
ERIE’s P/S Ratio of 4.83 aligns with the market consensus for the Insurance - Brokers industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
ERIE
8.78
Insurance - Brokers Industry
- Max
- 10.90
- Q3
- 8.10
- Median
- 6.93
- Q1
- 4.15
- Min
- 1.12
ERIE’s P/B Ratio of 8.78 is in the upper tier for the Insurance - Brokers 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.
Valuation at a Glance
| Symbol | ARCC | ERIE |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 10.53 | 29.54 |
| Forward PEG Ratio (TTM) | -7.92 | 2.94 |
| Price-to-Sales Ratio (P/S, TTM) | 7.30 | 4.83 |
| Price-to-Book Ratio (P/B, TTM) | 1.11 | 8.78 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -6.47 | 31.42 |
| EV-to-EBITDA (TTM) | 8.15 | 30.09 |
| EV-to-Sales (TTM) | 7.00 | 4.77 |