ARCC vs. KKR: Ares Capital vs. KKR Stock Comparison
How do Ares Capital (ARCC) and KKR (KKR) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Ares Capital (ARCC) and KKR (KKR) are both classified in the Asset Management & Custody Banks sub-industry within the broader Capital Markets industry, placing them in the closest GICS peer bucket.
| Profile Item | ARCC | KKR |
|---|---|---|
| Name | Ares Capital Corp. | Korro Bio, Inc. |
| Country/Region | United States | United States |
| GICS Sector | Financials | Financials |
| GICS Industry Group | Financial Services | Financial Services |
| GICS Industry | Capital Markets | Capital Markets |
| GICS Sub-Industry | Asset Management & Custody Banks | Asset Management & Custody Banks |
| Market Capitalization | 13.82 billion USD | 89.11 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | October 5, 2004 | July 15, 2010 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | ARCC | KKR |
|---|---|---|
| Total Return (1Y) | 5.40% | -18.61% |
| Total Return (3Y, Annualized) | 9.48% | 17.09% |
| Total Return (5Y, Annualized) | 8.26% | 5.12% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
KKR (KKR) has an aggressive beta of 1.69, indicating higher sensitivity to broad-market moves, while Ares Capital (ARCC) is defensive at 0.59 and tends to be less market-sensitive — they sit on opposite ends of the beta spectrum.
| Metric | ARCC | KKR |
|---|---|---|
| Volatility (1Y, Annualized) | 18.97% | 38.71% |
| Beta (5Y) | 0.59 | 1.69 |
| Max Drawdown (5Y) | -21.76% | -49.42% |
| Avg. Volume (3M) | 4.45M | 4.77M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | ARCC | KKR |
|---|---|---|
| Sharpe Ratio (1Y) | 0.06 | -0.59 |
| Sortino Ratio (1Y) | 0.09 | -0.81 |
Profitability
ROE (TTM)
Both Ares Capital (ARCC) at 6.19% and KKR (KKR) at 7.28% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.
ARCC
Financial Services industry group
6.19%
- Max
- 44.78%
- Q3
- 21.85%
- Median
- 12.91%
- ARCC
- 6.19%
- Q1
- 4.48%
- Min
- -18.71%
KKR
Financial Services industry group
7.28%
- Max
- 44.78%
- Q3
- 21.85%
- Median
- 12.91%
- KKR
- 7.28%
- Q1
- 4.48%
- Min
- -18.71%
Net Margin (TTM)
Ares Capital (ARCC) at 28.35% retains a top-quartile share of revenue as profit, ahead of KKR (KKR) at 12.20%, which keeps about the industry-typical share.
ARCC
Financial Services industry group
28.35%
- Max
- 62.84%
- ARCC
- 28.35%
- Q3
- 28.05%
- Median
- 15.36%
- Q1
- 4.82%
- Min
- -28.52%
KKR
Financial Services industry group
12.20%
- Max
- 62.84%
- Q3
- 28.05%
- Median
- 15.36%
- KKR
- 12.20%
- Q1
- 4.82%
- Min
- -28.52%
Operating Margin (TTM)
Ares Capital (ARCC) at 72.74% operates in the top operating margin quartile, ahead of KKR (KKR) at 20.65%, which runs around its industry’s norm.
ARCC
Financial Services industry group
72.74%
- Max
- 107.33%
- ARCC
- 72.74%
- Q3
- 55.90%
- Median
- 30.09%
- Q1
- 14.60%
- Min
- -44.34%
KKR
Financial Services industry group
20.65%
- Max
- 107.33%
- Q3
- 55.90%
- Median
- 30.09%
- KKR
- 20.65%
- Q1
- 14.60%
- Min
- -44.34%
Profitability Metrics
| Metric | ARCC | KKR |
|---|---|---|
| ROE (TTM) | 6.19% | 7.28% |
| ROA (TTM) | 4.78% | 1.39% |
| Net Margin (TTM) | 28.35% | 12.20% |
| Operating Margin (TTM) | 72.74% | 20.65% |
| Gross Margin (TTM) | -- | -- |
Growth
Revenue Growth
Both Ares Capital (ARCC) at -12.08% and KKR (KKR) at -11.24% post bottom-quartile revenue growth versus peers, pointing to weaker demand or pricing momentum than typical rivals.
EPS Growth
Ares Capital (ARCC) at -23.77% is around its peer norm for EPS growth, while KKR (KKR) at -28.66% drops into the bottom quartile, signaling weaker earnings momentum.
Growth Metrics
| Metric | ARCC | KKR |
|---|---|---|
| Revenue Growth (YoY) | -12.08% | -11.24% |
| Revenue Growth (3Y CAGR) | 26.67% | 51.12% |
| EPS Growth (YoY) | -23.77% | -28.66% |
| EPS Growth (3Y CAGR) | 16.05% | -- |
Financial Strength
Current Ratio (MRQ)
current ratio doesn’t apply on either side: Ares Capital (ARCC) in Financial Services and KKR (KKR) 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 / Equity (MRQ)
debt-to-equity ratio is set aside for both: Ares Capital (ARCC) in Financial Services and KKR (KKR) 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
| Metric | ARCC | KKR |
|---|---|---|
| Current Ratio (MRQ) | -- | -- |
| Debt / Equity (MRQ) | -- | -- |
| Net Debt / EBITDA | -- | -- |
Dividends
Dividend Yield (TTM)
KKR (KKR) at 0.77% pays an industry-typical yield; Ares Capital (ARCC) at 9.92% is above its entire peer range — the higher number, but one that calls for a look at payout sustainability before treating it as an advantage.
ARCC
Financial Services industry group
9.92%
- ARCC
- 9.92%
- Max
- 9.77%
- Q3
- 3.92%
- Median
- 1.09%
- Q1
- 0.00%
- Min
- 0.00%
KKR
Financial Services industry group
0.77%
- Max
- 9.77%
- Q3
- 3.92%
- Median
- 1.09%
- KKR
- 0.77%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Ares Capital (ARCC) reports payout ratio above 100% at 157.38%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile KKR (KKR) reports 23.96%, ranking against industry peers normally.
ARCC
Financial Services industry group
157.38%
- Max
- 241.07%
- ARCC
- 157.38%
- Q3
- 97.36%
- Median
- 25.77%
- Q1
- 0.00%
- Min
- 0.00%
KKR
Financial Services industry group
23.96%
- Max
- 241.07%
- Q3
- 97.36%
- Median
- 25.77%
- KKR
- 23.96%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | ARCC | KKR |
|---|---|---|
| Dividend Yield (TTM) | 9.92% | 0.77% |
| Dividend Payout Ratio (TTM) | 157.38% | 23.96% |
Valuation
P/E Ratio (TTM)
Ares Capital (ARCC) at 15.68 is near its industry’s usual P/E ratio, while KKR (KKR) at 30.82 sits in the richer quartile — KKR needs stronger growth or earnings quality to justify the premium.
ARCC
Financial Services industry group
15.68
- Max
- 45.85
- Q3
- 24.64
- ARCC
- 15.68
- Median
- 15.37
- Q1
- 9.68
- Min
- 0.16
KKR
Financial Services industry group
30.82
- Max
- 45.85
- KKR
- 30.82
- Q3
- 24.64
- Median
- 15.37
- Q1
- 9.68
- Min
- 0.16
P/S Ratio (TTM)
On P/S ratio, both Ares Capital (ARCC) at 4.48 and KKR (KKR) at 3.45 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.
ARCC
Financial Services industry group
4.48
- Max
- 9.23
- Q3
- 4.57
- ARCC
- 4.48
- Median
- 2.72
- Q1
- 1.28
- Min
- -0.55
KKR
Financial Services industry group
3.45
- Max
- 9.23
- Q3
- 4.57
- KKR
- 3.45
- Median
- 2.72
- Q1
- 1.28
- Min
- -0.55
P/B Ratio (MRQ)
On P/B ratio, both Ares Capital (ARCC) at 0.99 and KKR (KKR) at 3.04 are valued close to their industries’ norm against book — neither stands out from peers.
ARCC
Financial Services industry group
0.99
- Max
- 7.79
- Q3
- 3.63
- Median
- 1.57
- ARCC
- 0.99
- Q1
- 0.81
- Min
- -0.39
KKR
Financial Services industry group
3.04
- Max
- 7.79
- Q3
- 3.63
- KKR
- 3.04
- Median
- 1.57
- Q1
- 0.81
- Min
- -0.39
Valuation Metrics
| Metric | ARCC | KKR |
|---|---|---|
| P/E Ratio (TTM) | 15.68 | 30.82 |
| P/S Ratio (TTM) | 4.48 | 3.45 |
| P/B Ratio (MRQ) | 0.99 | 3.04 |
| Free Cash Flow Yield (TTM) | -- | -- |