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

Updated on July 7, 2025

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

Company Overview

ARCC’s market capitalization stands at 15.56 billion USD, while KEY’s is 20.23 billion USD, indicating their market valuations are broadly comparable.

With betas of 0.73 for ARCC and 1.07 for KEY, both stocks show similar sensitivity to overall market movements.

Symbol	ARCC	KEY
Company Name	Ares Capital Corporation	KeyCorp
Country	US	US
Sector	Financial Services	Financial Services
Industry	Asset Management	Banks - Regional
CEO	Kort Schnabel	Christopher Marrott Gorman
Price	22.41 USD	18.46 USD
Market Cap	15.56 billion USD	20.23 billion USD
Beta	0.73	1.07
Exchange	NASDAQ	NYSE
IPO Date	October 5, 2004	November 5, 1987
ADR	No	No

Historical Performance

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

KEY

0.15%

Banks - Regional Industry

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

KEY’s Return on Equity of 0.15% is in the lower quartile for the Banks - Regional industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

ARCC vs. KEY: 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.

KEY

0.07%

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. KEY: 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.

KEY

0.27%

Banks - Regional Industry

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

Falling into the lower quartile for the Banks - Regional industry, KEY’s Net Profit Margin of 0.27% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

ARCC vs. KEY: 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.

KEY

-0.76%

Banks - Regional Industry

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

KEY has a negative Operating Profit Margin of -0.76%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

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

Profitability at a Glance

Symbol	ARCC	KEY
Return on Equity (TTM)	11.03%	0.15%
Return on Assets (TTM)	5.08%	0.01%
Return on Invested Capital (TTM)	208.60%	0.07%
Net Profit Margin (TTM)	67.48%	0.27%
Operating Profit Margin (TTM)	91.13%	-0.76%
Gross Profit Margin (TTM)	95.92%	47.00%

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.

KEY

0.15

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. KEY: 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.

KEY

0.78

Banks - Regional Industry

Max: 1.74
Q3: 0.81
Median: 0.42
Q1: 0.18
Min: 0.00

KEY’s Debt-to-Equity Ratio of 0.78 is typical for the Banks - Regional industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ARCC vs. KEY: 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.

KEY

-0.02

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

Financial Strength at a Glance

Symbol	ARCC	KEY
Current Ratio (TTM)	--	0.15
Quick Ratio (TTM)	--	0.15
Debt-to-Equity Ratio (TTM)	--	0.78
Debt-to-Asset Ratio (TTM)	--	0.08
Net Debt-to-EBITDA Ratio (TTM)	-0.35	-754.88
Interest Coverage Ratio (TTM)	3.77	-0.02

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

ARCC vs. KEY: 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.

KEY

4.44%

Banks - Regional Industry

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

With a Dividend Yield of 4.44%, KEY offers a more attractive income stream than most of its peers in the Banks - Regional industry, signaling a strong commitment to shareholder returns.

ARCC vs. KEY: 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.

KEY

3,852.00%

Banks - Regional Industry

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

KEY’s Dividend Payout Ratio of 3,852.00% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.

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

Dividend at a Glance

Symbol	ARCC	KEY
Dividend Yield (TTM)	8.57%	4.44%
Dividend Payout Ratio (TTM)	81.85%	3852.00%

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.

KEY

809.77

Banks - Regional Industry

Max: 22.32
Q3: 15.38
Median: 12.31
Q1: 10.72
Min: 4.30

At 809.77, KEY’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.

ARCC vs. KEY: 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.

KEY

50.86

Banks - Regional Industry

Max: 4.03
Q3: 2.13
Median: 1.25
Q1: 0.71
Min: 0.02

KEY’s Forward PEG Ratio of 50.86 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.

ARCC vs. KEY: 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.

KEY

2.22

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. KEY: 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.

KEY

1.07

Banks - Regional Industry

Max: 1.99
Q3: 1.35
Median: 1.09
Q1: 0.92
Min: 0.33

KEY’s P/B Ratio of 1.07 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. KEY: A comparison of their P/B Ratio against their respective Asset Management and Banks - Regional industry benchmarks.

Valuation at a Glance

Symbol	ARCC	KEY
Price-to-Earnings Ratio (P/E, TTM)	10.53	809.77
Forward PEG Ratio (TTM)	-7.92	50.86
Price-to-Sales Ratio (P/S, TTM)	7.30	2.22
Price-to-Book Ratio (P/B, TTM)	1.11	1.07
Price-to-Free Cash Flow Ratio (P/FCF, TTM)	-6.47	198.34
EV-to-EBITDA (TTM)	8.15	-1944.94
EV-to-Sales (TTM)	7.00	3.63