ARCC vs. HTGC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARCC and HTGC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ARCC’s market capitalization of 15.56 billion USD is substantially larger than HTGC’s 3.26 billion USD, indicating a significant difference in their market valuations.
With betas of 0.73 for ARCC and 0.86 for HTGC, both stocks show similar sensitivity to overall market movements.
| Symbol | ARCC | HTGC |
|---|---|---|
| Company Name | Ares Capital Corporation | Hercules Capital, Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Asset Management |
| CEO | Kort Schnabel | Scott Bluestein |
| Price | 22.41 USD | 18.61 USD |
| Market Cap | 15.56 billion USD | 3.26 billion USD |
| Beta | 0.73 | 0.86 |
| Exchange | NASDAQ | NYSE |
| IPO Date | October 5, 2004 | June 9, 2005 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ARCC and HTGC 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.
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.
HTGC
-4.73%
Asset Management Industry
- Max
- 34.25%
- Q3
- 18.22%
- Median
- 11.24%
- Q1
- 5.81%
- Min
- -5.72%
HTGC has a negative Return on Equity of -4.73%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
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.
HTGC
185.87%
Asset Management Industry
- Max
- 42.18%
- Q3
- 20.06%
- Median
- 8.68%
- Q1
- 3.13%
- Min
- -16.42%
HTGC’s Return on Invested Capital of 185.87% 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.
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.
HTGC
-23.43%
Asset Management Industry
- Max
- 91.66%
- Q3
- 57.81%
- Median
- 29.48%
- Q1
- 15.70%
- Min
- -27.65%
HTGC has a negative Net Profit Margin of -23.43%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
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.
HTGC
47.79%
Asset Management Industry
- Max
- 99.76%
- Q3
- 78.28%
- Median
- 34.76%
- Q1
- 21.75%
- Min
- -48.25%
HTGC’s Operating Profit Margin of 47.79% is around the midpoint for the Asset Management industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ARCC | HTGC |
|---|---|---|
| Return on Equity (TTM) | 11.03% | -4.73% |
| Return on Assets (TTM) | 5.08% | -2.26% |
| Return on Invested Capital (TTM) | 208.60% | 185.87% |
| Net Profit Margin (TTM) | 67.48% | -23.43% |
| Operating Profit Margin (TTM) | 91.13% | 47.79% |
| Gross Profit Margin (TTM) | 95.92% | 83.12% |
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.
HTGC
4.79
Asset Management Industry
- Max
- 12.44
- Q3
- 5.76
- Median
- 3.04
- Q1
- 1.03
- Min
- 0.01
HTGC’s Current Ratio of 4.79 aligns with the median group of the Asset Management industry, indicating that its short-term liquidity is in line with its sector peers.
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.
HTGC
0.01
Asset Management Industry
- Max
- 2.62
- Q3
- 1.42
- Median
- 0.76
- Q1
- 0.34
- Min
- 0.01
Falling into the lower quartile for the Asset Management industry, HTGC’s Debt-to-Equity Ratio of 0.01 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
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.
HTGC
3.12
Asset Management Industry
- Max
- 13.30
- Q3
- 6.30
- Median
- 2.71
- Q1
- 1.00
- Min
- -6.91
HTGC’s Interest Coverage Ratio of 3.12 is positioned comfortably within the norm for the Asset Management industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ARCC | HTGC |
|---|---|---|
| Current Ratio (TTM) | -- | 4.79 |
| Quick Ratio (TTM) | -- | 4.79 |
| Debt-to-Equity Ratio (TTM) | -- | 0.01 |
| Debt-to-Asset Ratio (TTM) | -- | 0.00 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.35 | -0.13 |
| Interest Coverage Ratio (TTM) | 3.77 | 3.12 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARCC and HTGC. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
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.
HTGC
10.21%
Asset Management Industry
- Max
- 26.09%
- Q3
- 11.60%
- Median
- 6.37%
- Q1
- 2.75%
- Min
- 0.00%
HTGC’s Dividend Yield of 10.21% is consistent with its peers in the Asset Management industry, providing a dividend return that is standard for its sector.
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.
HTGC
-251.99%
Asset Management Industry
- Max
- 1,034.88%
- Q3
- 127.70%
- Median
- 75.15%
- Q1
- 34.21%
- Min
- 0.00%
HTGC has a negative Dividend Payout Ratio of -251.99%. This typically means the company paid a dividend despite reporting a net loss, a situation that may signal financial instability.
Dividend at a Glance
| Symbol | ARCC | HTGC |
|---|---|---|
| Dividend Yield (TTM) | 8.57% | 10.21% |
| Dividend Payout Ratio (TTM) | 81.85% | -251.99% |
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.
HTGC
-35.09
Asset Management Industry
- Max
- 38.72
- Q3
- 23.40
- Median
- 11.45
- Q1
- 8.80
- Min
- 1.54
HTGC has a negative P/E Ratio of -35.09. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
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.
HTGC
-34.63
Asset Management Industry
- Max
- 6.38
- Q3
- 3.23
- Median
- 1.55
- Q1
- 0.89
- Min
- 0.02
HTGC has a negative Forward PEG Ratio of -34.63. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
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.
HTGC
8.41
Asset Management Industry
- Max
- 13.75
- Q3
- 7.92
- Median
- 4.87
- Q1
- 3.51
- Min
- 0.02
HTGC’s P/S Ratio of 8.41 is in the upper echelon for the Asset Management industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
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.
HTGC
1.60
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.
Valuation at a Glance
| Symbol | ARCC | HTGC |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 10.53 | -35.09 |
| Forward PEG Ratio (TTM) | -7.92 | -34.63 |
| Price-to-Sales Ratio (P/S, TTM) | 7.30 | 8.41 |
| Price-to-Book Ratio (P/B, TTM) | 1.11 | 1.60 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -6.47 | -8.05 |
| EV-to-EBITDA (TTM) | 8.15 | 12.96 |
| EV-to-Sales (TTM) | 7.00 | 8.32 |