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ARCC vs. FRHC: Ares Capital vs. Freedom Stock Comparison

How do Ares Capital (ARCC) and Freedom (FRHC) 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 Freedom (FRHC) both belong to the Capital Markets industry, though ARCC is classified under Asset Management & Custody Banks while FRHC falls under Investment Banking & Brokerage.

Company profile comparison for Ares Capital (ARCC) and Freedom (FRHC)
Profile ItemARCCFRHC
NameAres Capital Corp.Freedom Holding Corp.
Country/RegionUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS Industry GroupFinancial ServicesFinancial Services
GICS IndustryCapital MarketsCapital Markets
GICS Sub-IndustryAsset Management & Custody BanksInvestment Banking & Brokerage
Market Capitalization13.82 billion USD11.41 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateOctober 5, 2004February 7, 2018
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

ARCC
FRHC
GSPC
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Ares Capital (ARCC) vs. Freedom (FRHC), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Ares Capital (ARCC) and Freedom (FRHC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Ares Capital (ARCC) and Freedom (FRHC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Ares Capital (ARCC) and Freedom (FRHC)
MetricARCCFRHC
Total Return (1Y)5.40%18.04%
Total Return (3Y, Annualized)9.48%28.04%
Total Return (5Y, Annualized)8.26%18.95%

Risk Profile

Drawdown History

ARCC
FRHC
GSPC
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Ares Capital (ARCC) vs. Freedom (FRHC), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Ares Capital (ARCC) and Freedom (FRHC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Ares Capital (ARCC) and Freedom (FRHC)
MetricARCCFRHC
Volatility (1Y, Annualized)18.97%47.01%
Beta (5Y)0.590.71
Max Drawdown (5Y)-21.76%-45.80%
Avg. Volume (3M)4.45M108.35K

Risk-Adjusted Performance

Risk-Return Positioning

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ARCC and FRHC are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Ares Capital (ARCC) and Freedom (FRHC)
MetricARCCFRHC
Sharpe Ratio (1Y)0.060.29
Sortino Ratio (1Y)0.090.45

Profitability

ROE (TTM)

Both Ares Capital (ARCC) at 6.19% and Freedom (FRHC) at 10.68% 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%

FRHC

Financial Services industry group

10.68%

Max
44.78%
Q3
21.85%
Median
12.91%
FRHC
10.68%
Q1
4.48%
Min
-18.71%
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Ares Capital (ARCC) vs. Freedom (FRHC): A comparison of their ROE against the Financial Services industry group benchmark.

Net Margin (TTM)

Ares Capital (ARCC) at 28.35% retains a top-quartile share of revenue as profit, ahead of Freedom (FRHC) at 8.43%, 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%

FRHC

Financial Services industry group

8.43%

Max
62.84%
Q3
28.05%
Median
15.36%
FRHC
8.43%
Q1
4.82%
Min
-28.52%
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Ares Capital (ARCC) vs. Freedom (FRHC): A comparison of their net margin against the Financial Services industry group benchmark.

Operating Margin (TTM)

Ares Capital (ARCC) at 72.74% carries a top-quartile operating margin, while Freedom (FRHC) at 5.01% operates in the bottom quartile.

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%

FRHC

Financial Services industry group

5.01%

Max
107.33%
Q3
55.90%
Median
30.09%
Q1
14.60%
FRHC
5.01%
Min
-44.34%
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Ares Capital (ARCC) vs. Freedom (FRHC): A comparison of their operating margin against the Financial Services industry group benchmark.

Profitability Metrics

Profitability metrics for Ares Capital (ARCC) and Freedom (FRHC)
MetricARCCFRHC
ROE (TTM)6.19%10.68%
ROA (TTM)4.78%1.24%
Net Margin (TTM)28.35%8.43%
Operating Margin (TTM)72.74%5.01%
Gross Margin (TTM)----

Growth

Revenue Growth

Freedom (FRHC) at 8.97% is around its peer norm for revenue growth, while Ares Capital (ARCC) at -12.08% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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Ares Capital (ARCC) vs. Freedom (FRHC): A comparison of their Revenue Growth across different time periods.

EPS Growth

Freedom (FRHC) at 98.93% sits in the top EPS growth quartile, while Ares Capital (ARCC) at -23.77% is closer to the peer norm — faster per-share earnings growth for FRHC.

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Ares Capital (ARCC) vs. Freedom (FRHC): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Ares Capital (ARCC) and Freedom (FRHC)
MetricARCCFRHC
Revenue Growth (YoY)-12.08%8.97%
Revenue Growth (3Y CAGR)26.67%39.61%
EPS Growth (YoY)-23.77%98.93%
EPS Growth (3Y CAGR)16.05%-10.08%

Financial Strength

Current Ratio (MRQ)

current ratio doesn’t apply on either side: Ares Capital (ARCC) in Financial Services and Freedom (FRHC) 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 Freedom (FRHC) 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

Financial strength metrics for Ares Capital (ARCC) and Freedom (FRHC)
MetricARCCFRHC
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Freedom (FRHC) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Ares Capital (ARCC) reports a yield of 9.92%, ranking against industry peers normally.

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%

FRHC

Financial Services industry group

0.00%

Max
9.77%
Q3
3.92%
Median
1.09%
FRHC
0.00%
Q1
0.00%
Min
0.00%
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Ares Capital (ARCC) vs. Freedom (FRHC): A comparison of their dividend yield against the Financial Services industry group benchmark.

Dividend Payout Ratio (TTM)

Ares Capital (ARCC) reports payout ratio above 100% at 157.38%, meaning dividends exceeded current-period earnings; Freedom (FRHC) pays no dividend (payout 0.00%).

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%

FRHC

Financial Services industry group

0.00%

Max
241.07%
Q3
97.36%
Median
25.77%
FRHC
0.00%
Q1
0.00%
Min
0.00%
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Ares Capital (ARCC) vs. Freedom (FRHC): A comparison of their payout ratio against the Financial Services industry group benchmark.

Dividend Metrics

Dividend metrics for Ares Capital (ARCC) and Freedom (FRHC)
MetricARCCFRHC
Dividend Yield (TTM)9.92%0.00%
Dividend Payout Ratio (TTM)157.38%0.00%

Valuation

P/E Ratio (TTM)

Ares Capital (ARCC) at 15.68 is near its industry’s usual P/E ratio, while Freedom (FRHC) at 70.97 sits above its peer range — an unusually expensive price for FRHC’s trailing earnings.

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

FRHC

Financial Services industry group

70.97

FRHC
70.97
Max
45.85
Q3
24.64
Median
15.37
Q1
9.68
Min
0.16
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Ares Capital (ARCC) vs. Freedom (FRHC): A comparison of their P/E ratio against the Financial Services industry group benchmark.

P/S Ratio (TTM)

Ares Capital (ARCC) at 4.48 is priced about in line with its industry on P/S ratio, while Freedom (FRHC) at 6.51 sits in the pricier quartile — FRHC costs more per dollar of sales.

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

FRHC

Financial Services industry group

6.51

Max
9.23
FRHC
6.51
Q3
4.57
Median
2.72
Q1
1.28
Min
-0.55
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Ares Capital (ARCC) vs. Freedom (FRHC): A comparison of their P/S ratio against the Financial Services industry group benchmark.

P/B Ratio (MRQ)

Ares Capital (ARCC) at 0.99 is valued about in line with its industry on P/B ratio, while Freedom (FRHC) at 7.16 carries an above-peer premium to book — FRHC is pricier on assets.

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

FRHC

Financial Services industry group

7.16

Max
7.79
FRHC
7.16
Q3
3.63
Median
1.57
Q1
0.81
Min
-0.39
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Ares Capital (ARCC) vs. Freedom (FRHC): A comparison of their P/B ratio against the Financial Services industry group benchmark.

Valuation Metrics

Valuation metrics for Ares Capital (ARCC) and Freedom (FRHC)
MetricARCCFRHC
P/E Ratio (TTM)15.6870.97
P/S Ratio (TTM)4.486.51
P/B Ratio (MRQ)0.997.16
Free Cash Flow Yield (TTM)----