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

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

Company Overview

HDB’s market capitalization of 195.63 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 0.57 for HDB, both stocks show similar sensitivity to overall market movements.

HDB is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. ARCC, on the other hand, is a domestic entity.

SymbolARCCHDB
Company NameAres Capital CorporationHDFC Bank Limited
CountryUSIN
SectorFinancial ServicesFinancial Services
IndustryAsset ManagementBanks - Regional
CEOKort SchnabelSashidhar Jagdishan
Price22.41 USD76.54 USD
Market Cap15.56 billion USD195.63 billion USD
Beta0.730.57
ExchangeNASDAQNYSE
IPO DateOctober 5, 2004July 20, 2001
ADRNoYes

Historical Performance

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

HDB

14.29%

Banks - Regional Industry

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

In the upper quartile for the Banks - Regional industry, HDB’s Return on Equity of 14.29% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ARCC vs. HDB: 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.

HDB

1.86%

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. HDB: 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.

HDB

16.18%

Banks - Regional Industry

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

HDB’s Net Profit Margin of 16.18% 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. HDB: 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.

HDB

24.51%

Banks - Regional Industry

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

HDB’s Operating Profit Margin of 24.51% 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. HDB: A comparison of their Operating Margin against their respective Asset Management and Banks - Regional industry benchmarks.

Profitability at a Glance

SymbolARCCHDB
Return on Equity (TTM)11.03%14.29%
Return on Assets (TTM)5.08%1.61%
Return on Invested Capital (TTM)208.60%1.86%
Net Profit Margin (TTM)67.48%16.18%
Operating Profit Margin (TTM)91.13%24.51%
Gross Profit Margin (TTM)95.92%58.29%

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.

HDB

--

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. HDB: 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.

HDB

1.22

Banks - Regional Industry

Max
1.74
Q3
0.81
Median
0.42
Q1
0.18
Min
0.00

HDB’s leverage is in the upper quartile of the Banks - Regional industry, with a Debt-to-Equity Ratio of 1.22. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

ARCC vs. HDB: 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.

HDB

0.58

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

Financial Strength at a Glance

SymbolARCCHDB
Current Ratio (TTM)----
Quick Ratio (TTM)----
Debt-to-Equity Ratio (TTM)--1.22
Debt-to-Asset Ratio (TTM)--0.14
Net Debt-to-EBITDA Ratio (TTM)-0.351.81
Interest Coverage Ratio (TTM)3.770.58

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

ARCC vs. HDB: 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.

HDB

1.10%

Banks - Regional Industry

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

HDB’s Dividend Yield of 1.10% is in the lower quartile for the Banks - Regional industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

ARCC vs. HDB: 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.

HDB

0.00%

Banks - Regional Industry

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

HDB has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

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

Dividend at a Glance

SymbolARCCHDB
Dividend Yield (TTM)8.57%1.10%
Dividend Payout Ratio (TTM)81.85%0.00%

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.

HDB

21.64

Banks - Regional Industry

Max
22.32
Q3
15.38
Median
12.31
Q1
10.72
Min
4.30

A P/E Ratio of 21.64 places HDB in the upper quartile for the Banks - Regional industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

ARCC vs. HDB: 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.

HDB

1.50

Banks - Regional Industry

Max
4.03
Q3
2.13
Median
1.25
Q1
0.71
Min
0.02

HDB’s Forward PEG Ratio of 1.50 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. HDB: 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.

HDB

3.49

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. HDB: 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.

HDB

2.94

Banks - Regional Industry

Max
1.99
Q3
1.35
Median
1.09
Q1
0.92
Min
0.33

At 2.94, HDB’s P/B Ratio is at an extreme premium to the Banks - Regional 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. HDB: A comparison of their P/B Ratio against their respective Asset Management and Banks - Regional industry benchmarks.

Valuation at a Glance

SymbolARCCHDB
Price-to-Earnings Ratio (P/E, TTM)10.5321.64
Forward PEG Ratio (TTM)-7.921.50
Price-to-Sales Ratio (P/S, TTM)7.303.49
Price-to-Book Ratio (P/B, TTM)1.112.94
Price-to-Free Cash Flow Ratio (P/FCF, TTM)-6.47--
EV-to-EBITDA (TTM)8.159.02
EV-to-Sales (TTM)7.004.37