ARCC vs. HOOD: Ares Capital vs. Robinhood Markets Stock Comparison

Company Profile

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

Ares Capital (ARCC) has more than two decades of public-market history since October 5, 2004, whereas Robinhood Markets (HOOD) listed on July 29, 2021 and has a much shorter record to draw on.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Robinhood Markets (HOOD) has a highly aggressive beta of 2.52, indicating much higher sensitivity to broad-market moves, while Ares Capital (ARCC) is defensive at 0.59 and tends to be less market-sensitive — a wide gap in beta profiles.

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Both Ares Capital (ARCC) at 6.19% and Robinhood Markets (HOOD) at 21.45% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

For every dollar of sales, both Ares Capital (ARCC) at 28.35% and Robinhood Markets (HOOD) at 39.04% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

Ares Capital (ARCC) at 72.74% operates in the top operating margin quartile, ahead of Robinhood Markets (HOOD) at 48.10%, which runs around its industry’s norm.

Profitability Metrics

Growth

Robinhood Markets (HOOD) at 51.58% sits in the top revenue growth quartile, while Ares Capital (ARCC) at -12.08% is in the bottom quartile, showing a clear gap in revenue momentum.

Both Ares Capital (ARCC) at -23.77% and Robinhood Markets (HOOD) at 31.41% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

Growth Metrics

Financial Strength

current ratio doesn’t apply on either side: Ares Capital (ARCC) in Financial Services and Robinhood Markets (HOOD) 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-to-equity ratio is set aside for both: Ares Capital (ARCC) in Financial Services and Robinhood Markets (HOOD) 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

Dividends

Robinhood Markets (HOOD) 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.

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

Dividend Metrics

Valuation

Ares Capital (ARCC) at 15.68 is near its industry’s usual P/E ratio, while Robinhood Markets (HOOD) at 37.29 sits in the richer quartile — HOOD needs stronger growth or earnings quality to justify the premium.

Ares Capital (ARCC) at 4.48 prices around its industry’s typical P/S ratio, while Robinhood Markets (HOOD) at 14.34 clears its benchmark range — HOOD looks notably rich on sales.

Ares Capital (ARCC) at 0.99 is valued about in line with its industry on P/B ratio, while Robinhood Markets (HOOD) at 7.29 carries an above-peer premium to book — HOOD is pricier on assets.

Valuation Metrics