ARCC vs. ITUB: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARCC and ITUB, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ITUB’s market capitalization of 70.93 billion USD is significantly greater than ARCC’s 15.56 billion USD, highlighting its more substantial market valuation.
ARCC’s beta of 0.73 points to significantly higher volatility compared to ITUB (beta: 0.31), suggesting ARCC has greater potential for both gains and losses relative to market movements.
ITUB 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.
| Symbol | ARCC | ITUB |
|---|---|---|
| Company Name | Ares Capital Corporation | Itaú Unibanco Holding S.A. |
| Country | US | BR |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Banks - Regional |
| CEO | Kort Schnabel | Milton Maluhy Filho |
| Price | 22.41 USD | 6.92 USD |
| Market Cap | 15.56 billion USD | 70.93 billion USD |
| Beta | 0.73 | 0.31 |
| Exchange | NASDAQ | NYSE |
| IPO Date | October 5, 2004 | February 25, 2002 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of ARCC and ITUB 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.
ITUB
20.70%
Banks - Regional Industry
- Max
- 19.20%
- Q3
- 11.87%
- Median
- 9.48%
- Q1
- 6.66%
- Min
- -0.15%
ITUB’s Return on Equity of 20.70% is exceptionally high, placing it well beyond the typical range for the Banks - Regional industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
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.
ITUB
1.37%
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.
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.
ITUB
14.96%
Banks - Regional Industry
- Max
- 32.03%
- Q3
- 21.35%
- Median
- 16.99%
- Q1
- 12.69%
- Min
- 0.27%
ITUB’s Net Profit Margin of 14.96% 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.
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.
ITUB
18.38%
Banks - Regional Industry
- Max
- 40.01%
- Q3
- 26.24%
- Median
- 21.14%
- Q1
- 15.85%
- Min
- 1.50%
ITUB’s Operating Profit Margin of 18.38% is around the midpoint for the Banks - Regional industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ARCC | ITUB |
|---|---|---|
| Return on Equity (TTM) | 11.03% | 20.70% |
| Return on Assets (TTM) | 5.08% | 1.49% |
| Return on Invested Capital (TTM) | 208.60% | 1.37% |
| Net Profit Margin (TTM) | 67.48% | 14.96% |
| Operating Profit Margin (TTM) | 91.13% | 18.38% |
| Gross Profit Margin (TTM) | 95.92% | 46.31% |
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.
ITUB
--
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.
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.
ITUB
1.89
Banks - Regional Industry
- Max
- 1.74
- Q3
- 0.81
- Median
- 0.42
- Q1
- 0.18
- Min
- 0.00
With a Debt-to-Equity Ratio of 1.89, ITUB operates with exceptionally high leverage compared to the Banks - Regional industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
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.
ITUB
0.40
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.
Financial Strength at a Glance
| Symbol | ARCC | ITUB |
|---|---|---|
| Current Ratio (TTM) | -- | -- |
| Quick Ratio (TTM) | -- | -- |
| Debt-to-Equity Ratio (TTM) | -- | 1.89 |
| Debt-to-Asset Ratio (TTM) | -- | 0.14 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.35 | 7.67 |
| Interest Coverage Ratio (TTM) | 3.77 | 0.40 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARCC and ITUB. 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.
ITUB
10.58%
Banks - Regional Industry
- Max
- 11.72%
- Q3
- 4.07%
- Median
- 3.00%
- Q1
- 1.68%
- Min
- 0.00%
With a Dividend Yield of 10.58%, ITUB offers a more attractive income stream than most of its peers in the Banks - Regional industry, signaling a strong commitment to shareholder returns.
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.
ITUB
61.96%
Banks - Regional Industry
- Max
- 155.35%
- Q3
- 50.05%
- Median
- 34.14%
- Q1
- 18.61%
- Min
- 0.00%
ITUB’s Dividend Payout Ratio of 61.96% 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.
Dividend at a Glance
| Symbol | ARCC | ITUB |
|---|---|---|
| Dividend Yield (TTM) | 8.57% | 10.58% |
| Dividend Payout Ratio (TTM) | 81.85% | 61.96% |
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.
ITUB
9,211.91
Banks - Regional Industry
- Max
- 22.32
- Q3
- 15.38
- Median
- 12.31
- Q1
- 10.72
- Min
- 4.30
At 9,211.91, ITUB’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Banks - Regional industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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.
ITUB
1,307.13
Banks - Regional Industry
- Max
- 4.03
- Q3
- 2.13
- Median
- 1.25
- Q1
- 0.71
- Min
- 0.02
ITUB’s Forward PEG Ratio of 1,307.13 is exceptionally high for the Banks - Regional industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
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.
ITUB
1.34
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.
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.
ITUB
1,913.51
Banks - Regional Industry
- Max
- 1.99
- Q3
- 1.35
- Median
- 1.09
- Q1
- 0.92
- Min
- 0.33
At 1,913.51, ITUB’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.
Valuation at a Glance
| Symbol | ARCC | ITUB |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 10.53 | 9211.91 |
| Forward PEG Ratio (TTM) | -7.92 | 1307.13 |
| Price-to-Sales Ratio (P/S, TTM) | 7.30 | 1.34 |
| Price-to-Book Ratio (P/B, TTM) | 1.11 | 1913.51 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -6.47 | -16.01 |
| EV-to-EBITDA (TTM) | 8.15 | 16.99 |
| EV-to-Sales (TTM) | 7.00 | 2.45 |