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

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Here’s a clear look at ARCC and HBAN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

HBAN’s market capitalization of 25.55 billion USD is significantly greater than ARCC’s 15.56 billion USD, highlighting its more substantial market valuation.

With betas of 0.73 for ARCC and 0.94 for HBAN, both stocks show similar sensitivity to overall market movements.

SymbolARCCHBAN
Company NameAres Capital CorporationHuntington Bancshares Incorporated
CountryUSUS
SectorFinancial ServicesFinancial Services
IndustryAsset ManagementBanks - Regional
CEOKort SchnabelStephen D. Steinour
Price22.41 USD17.54 USD
Market Cap15.56 billion USD25.55 billion USD
Beta0.730.94
ExchangeNASDAQNASDAQ
IPO DateOctober 5, 2004March 17, 1980
ADRNoNo

Historical Performance

This chart compares the performance of ARCC and HBAN 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. HBAN: 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.

HBAN

10.20%

Banks - Regional Industry

Max
19.20%
Q3
11.87%
Median
9.48%
Q1
6.66%
Min
-0.15%

HBAN’s Return on Equity of 10.20% is on par with the norm for the Banks - Regional industry, indicating its profitability relative to shareholder equity is typical for the sector.

ARCC vs. HBAN: A comparison of their ROE against their respective Asset Management and Banks - Regional 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.

HBAN

4.67%

Banks - Regional Industry

Max
13.33%
Q3
7.16%
Median
5.31%
Q1
2.87%
Min
-3.49%

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

ARCC vs. HBAN: A comparison of their ROIC against their respective Asset Management and Banks - Regional 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.

HBAN

16.93%

Banks - Regional Industry

Max
32.03%
Q3
21.35%
Median
16.99%
Q1
12.69%
Min
0.27%

HBAN’s Net Profit Margin of 16.93% is aligned with the median group of its peers in the Banks - Regional industry. This indicates its ability to convert revenue into profit is typical for the sector.

ARCC vs. HBAN: A comparison of their Net Profit Margin against their respective Asset Management and Banks - Regional 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.

HBAN

21.05%

Banks - Regional Industry

Max
40.01%
Q3
26.24%
Median
21.14%
Q1
15.85%
Min
1.50%

HBAN’s Operating Profit Margin of 21.05% is around the midpoint for the Banks - Regional industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

SymbolARCCHBAN
Return on Equity (TTM)11.03%10.20%
Return on Assets (TTM)5.08%0.98%
Return on Invested Capital (TTM)208.60%4.67%
Net Profit Margin (TTM)67.48%16.93%
Operating Profit Margin (TTM)91.13%21.05%
Gross Profit Margin (TTM)95.92%58.88%

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.

HBAN

0.16

Banks - Regional Industry

Max
0.39
Q3
0.22
Median
0.15
Q1
0.10
Min
0.01

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

ARCC vs. HBAN: A comparison of their Current Ratio against their respective Asset Management and Banks - Regional 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.

HBAN

0.92

Banks - Regional Industry

Max
1.74
Q3
0.81
Median
0.42
Q1
0.18
Min
0.00

HBAN’s leverage is in the upper quartile of the Banks - Regional industry, with a Debt-to-Equity Ratio of 0.92. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

ARCC vs. HBAN: A comparison of their D/E Ratio against their respective Asset Management and Banks - Regional 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.

HBAN

0.56

Banks - Regional Industry

Max
1.58
Q3
0.84
Median
0.59
Q1
0.35
Min
-0.35

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

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

Financial Strength at a Glance

SymbolARCCHBAN
Current Ratio (TTM)--0.16
Quick Ratio (TTM)--0.16
Debt-to-Equity Ratio (TTM)--0.92
Debt-to-Asset Ratio (TTM)--0.09
Net Debt-to-EBITDA Ratio (TTM)-0.350.89
Interest Coverage Ratio (TTM)3.770.56

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

ARCC vs. HBAN: 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.

HBAN

3.53%

Banks - Regional Industry

Max
11.72%
Q3
4.07%
Median
3.00%
Q1
1.68%
Min
0.00%

HBAN’s Dividend Yield of 3.53% is consistent with its peers in the Banks - Regional industry, providing a dividend return that is standard for its sector.

ARCC vs. HBAN: A comparison of their Dividend Yield against their respective Asset Management and Banks - Regional 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.

HBAN

50.63%

Banks - Regional Industry

Max
155.35%
Q3
50.05%
Median
34.14%
Q1
18.61%
Min
0.00%

HBAN’s Dividend Payout Ratio of 50.63% is in the upper quartile for the Banks - Regional 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.

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

Dividend at a Glance

SymbolARCCHBAN
Dividend Yield (TTM)8.57%3.53%
Dividend Payout Ratio (TTM)81.85%50.63%

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.

HBAN

12.46

Banks - Regional Industry

Max
22.32
Q3
15.38
Median
12.31
Q1
10.72
Min
4.30

HBAN’s P/E Ratio of 12.46 is within the middle range for the Banks - Regional 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. HBAN: A comparison of their P/E Ratio against their respective Asset Management and Banks - Regional 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.

HBAN

1.15

Banks - Regional Industry

Max
4.03
Q3
2.13
Median
1.25
Q1
0.71
Min
0.02

HBAN’s Forward PEG Ratio of 1.15 is within the middle range of its peers in the Banks - Regional industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

ARCC vs. HBAN: A comparison of their Forward PEG Ratio against their respective Asset Management and Banks - Regional 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.

HBAN

2.11

Banks - Regional Industry

Max
4.28
Q3
2.76
Median
2.17
Q1
1.71
Min
0.55

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

ARCC vs. HBAN: A comparison of their P/S Ratio against their respective Asset Management and Banks - Regional 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.

HBAN

1.25

Banks - Regional Industry

Max
1.99
Q3
1.35
Median
1.09
Q1
0.92
Min
0.33

HBAN’s P/B Ratio of 1.25 is within the conventional range for the Banks - Regional 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.

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

Valuation at a Glance

SymbolARCCHBAN
Price-to-Earnings Ratio (P/E, TTM)10.5312.46
Forward PEG Ratio (TTM)-7.921.15
Price-to-Sales Ratio (P/S, TTM)7.302.11
Price-to-Book Ratio (P/B, TTM)1.111.25
Price-to-Free Cash Flow Ratio (P/FCF, TTM)-6.4715.20
EV-to-EBITDA (TTM)8.158.91
EV-to-Sales (TTM)7.002.35