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

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Here’s a clear look at ARCC and EWBC, 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 EWBC’s is 15.01 billion USD, indicating their market valuations are broadly comparable.

With betas of 0.73 for ARCC and 0.91 for EWBC, both stocks show similar sensitivity to overall market movements.

SymbolARCCEWBC
Company NameAres Capital CorporationEast West Bancorp, Inc.
CountryUSUS
SectorFinancial ServicesFinancial Services
IndustryAsset ManagementBanks - Diversified
CEOKort SchnabelDominic Ng CPA
Price22.41 USD108.87 USD
Market Cap15.56 billion USD15.01 billion USD
Beta0.730.91
ExchangeNASDAQNASDAQ
IPO DateOctober 5, 2004February 3, 1999
ADRNoNo

Historical Performance

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

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.

EWBC

15.34%

Banks - Diversified Industry

Max
20.93%
Q3
14.73%
Median
12.33%
Q1
9.14%
Min
5.86%

In the upper quartile for the Banks - Diversified industry, EWBC’s Return on Equity of 15.34% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ARCC vs. EWBC: A comparison of their ROE against their respective Asset Management and Banks - Diversified industry benchmarks.

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.

EWBC

9.23%

Banks - Diversified Industry

Max
4.52%
Q3
2.95%
Median
1.89%
Q1
0.86%
Min
0.18%

Return on Invested Capital is often not a primary measure of capital efficiency in the Banks - Diversified industry.

ARCC vs. EWBC: A comparison of their ROIC against their respective Asset Management and Banks - Diversified industry benchmarks.

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.

EWBC

25.99%

Banks - Diversified Industry

Max
33.40%
Q3
26.40%
Median
19.24%
Q1
14.99%
Min
7.95%

EWBC’s Net Profit Margin of 25.99% is aligned with the median group of its peers in the Banks - Diversified industry. This indicates its ability to convert revenue into profit is typical for the sector.

ARCC vs. EWBC: A comparison of their Net Profit Margin against their respective Asset Management and Banks - Diversified industry benchmarks.

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.

EWBC

33.31%

Banks - Diversified Industry

Max
50.90%
Q3
37.76%
Median
28.44%
Q1
15.73%
Min
8.60%

EWBC’s Operating Profit Margin of 33.31% is around the midpoint for the Banks - Diversified industry, indicating that its efficiency in managing core business operations is typical for the sector.

ARCC vs. EWBC: A comparison of their Operating Margin against their respective Asset Management and Banks - Diversified industry benchmarks.

Profitability at a Glance

SymbolARCCEWBC
Return on Equity (TTM)11.03%15.34%
Return on Assets (TTM)5.08%1.54%
Return on Invested Capital (TTM)208.60%9.23%
Net Profit Margin (TTM)67.48%25.99%
Operating Profit Margin (TTM)91.13%33.31%
Gross Profit Margin (TTM)95.92%53.71%

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.

EWBC

0.06

Banks - Diversified Industry

Max
0.67
Q3
0.49
Median
0.39
Q1
0.28
Min
0.06

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

ARCC vs. EWBC: A comparison of their Current Ratio against their respective Asset Management and Banks - Diversified industry benchmarks.

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.

EWBC

0.49

Banks - Diversified Industry

Max
4.98
Q3
3.65
Median
3.13
Q1
1.73
Min
0.09

Falling into the lower quartile for the Banks - Diversified industry, EWBC’s Debt-to-Equity Ratio of 0.49 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ARCC vs. EWBC: A comparison of their D/E Ratio against their respective Asset Management and Banks - Diversified industry benchmarks.

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.

EWBC

0.80

Banks - Diversified Industry

Max
0.98
Q3
0.78
Median
0.55
Q1
0.31
Min
0.09

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

ARCC vs. EWBC: A comparison of their Interest Coverage against their respective Asset Management and Banks - Diversified industry benchmarks.

Financial Strength at a Glance

SymbolARCCEWBC
Current Ratio (TTM)--0.06
Quick Ratio (TTM)--0.06
Debt-to-Equity Ratio (TTM)--0.49
Debt-to-Asset Ratio (TTM)--0.05
Net Debt-to-EBITDA Ratio (TTM)-0.350.24
Interest Coverage Ratio (TTM)3.770.80

Growth

The following charts compare key year-over-year (YoY) growth metrics for ARCC and EWBC. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ARCC vs. EWBC: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ARCC vs. EWBC: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ARCC vs. EWBC: A comparison of their annual year-over-year 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.

EWBC

2.11%

Banks - Diversified Industry

Max
7.73%
Q3
4.16%
Median
3.24%
Q1
2.27%
Min
0.00%

EWBC’s Dividend Yield of 2.11% is in the lower quartile for the Banks - Diversified industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

ARCC vs. EWBC: A comparison of their Dividend Yield against their respective Asset Management and Banks - Diversified industry benchmarks.

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.

EWBC

26.91%

Banks - Diversified Industry

Max
84.94%
Q3
39.11%
Median
26.91%
Q1
0.00%
Min
0.00%

EWBC’s Dividend Payout Ratio of 26.91% is within the typical range for the Banks - Diversified industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ARCC vs. EWBC: A comparison of their Payout Ratio against their respective Asset Management and Banks - Diversified industry benchmarks.

Dividend at a Glance

SymbolARCCEWBC
Dividend Yield (TTM)8.57%2.11%
Dividend Payout Ratio (TTM)81.85%26.91%

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.

EWBC

12.85

Banks - Diversified Industry

Max
14.13
Q3
13.37
Median
11.90
Q1
9.29
Min
7.43

EWBC’s P/E Ratio of 12.85 is within the middle range for the Banks - Diversified industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ARCC vs. EWBC: A comparison of their P/E Ratio against their respective Asset Management and Banks - Diversified industry benchmarks.

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.

EWBC

1.47

Banks - Diversified Industry

Max
1.98
Q3
1.41
Median
1.15
Q1
0.77
Min
0.45

A Forward PEG Ratio of 1.47 places EWBC in the upper quartile for the Banks - Diversified industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.

ARCC vs. EWBC: A comparison of their Forward PEG Ratio against their respective Asset Management and Banks - Diversified industry benchmarks.

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.

EWBC

3.33

Banks - Diversified Industry

Max
4.15
Q3
2.92
Median
2.29
Q1
1.83
Min
0.94

The P/S Ratio is often not a primary valuation tool in the Banks - Diversified industry.

ARCC vs. EWBC: A comparison of their P/S Ratio against their respective Asset Management and Banks - Diversified industry benchmarks.

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.

EWBC

1.90

Banks - Diversified Industry

Max
1.89
Q3
1.47
Median
1.23
Q1
1.10
Min
0.65

At 1.90, EWBC’s P/B Ratio is at an extreme premium to the Banks - Diversified industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

ARCC vs. EWBC: A comparison of their P/B Ratio against their respective Asset Management and Banks - Diversified industry benchmarks.

Valuation at a Glance

SymbolARCCEWBC
Price-to-Earnings Ratio (P/E, TTM)10.5312.85
Forward PEG Ratio (TTM)-7.921.47
Price-to-Sales Ratio (P/S, TTM)7.303.33
Price-to-Book Ratio (P/B, TTM)1.111.90
Price-to-Free Cash Flow Ratio (P/FCF, TTM)-6.4710.54
EV-to-EBITDA (TTM)8.159.08
EV-to-Sales (TTM)7.003.42