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ARCC vs. LPLA: Ares Capital vs. LPL Financial Stock Comparison

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

Company profile comparison for Ares Capital (ARCC) and LPL Financial (LPLA)
Profile ItemARCCLPLA
NameAres Capital Corp.LPL Financial Holdings Inc.
Country/RegionUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS Industry GroupFinancial ServicesFinancial Services
GICS IndustryCapital MarketsCapital Markets
GICS Sub-IndustryAsset Management & Custody BanksInvestment Banking & Brokerage
Market Capitalization13.82 billion USD23.01 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateOctober 5, 2004November 18, 2010
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

ARCC
LPLA
GSPC
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Ares Capital (ARCC) vs. LPL Financial (LPLA), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Ares Capital (ARCC) and LPL Financial (LPLA). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Ares Capital (ARCC) and LPL Financial (LPLA). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Ares Capital (ARCC) and LPL Financial (LPLA)
MetricARCCLPLA
Total Return (1Y)5.40%-17.27%
Total Return (3Y, Annualized)9.48%11.10%
Total Return (5Y, Annualized)8.26%13.92%

Risk Profile

Drawdown History

ARCC
LPLA
GSPC
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Ares Capital (ARCC) vs. LPL Financial (LPLA), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Ares Capital (ARCC) and LPL Financial (LPLA). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Ares Capital (ARCC) and LPL Financial (LPLA)
MetricARCCLPLA
Volatility (1Y, Annualized)18.97%39.22%
Beta (5Y)0.590.52
Max Drawdown (5Y)-21.76%-33.18%
Avg. Volume (3M)4.45M855.76K

Risk-Adjusted Performance

Risk-Return Positioning

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ARCC and LPLA are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Ares Capital (ARCC) and LPL Financial (LPLA)
MetricARCCLPLA
Sharpe Ratio (1Y)0.06-0.55
Sortino Ratio (1Y)0.09-0.70

Profitability

ROE (TTM)

LPL Financial (LPLA) at 25.66% sits in the top ROE quartile, while Ares Capital (ARCC) at 6.19% is closer to the peer norm — stronger capital efficiency for LPLA.

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%

LPLA

Financial Services industry group

25.66%

Max
44.78%
LPLA
25.66%
Q3
21.85%
Median
12.91%
Q1
4.48%
Min
-18.71%
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Ares Capital (ARCC) vs. LPL Financial (LPLA): A comparison of their ROE against the Financial Services industry group benchmark.

Net Margin (TTM)

Ares Capital (ARCC) at 28.35% retains a top-quartile share of revenue as profit, ahead of LPL Financial (LPLA) at 6.97%, 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%

LPLA

Financial Services industry group

6.97%

Max
62.84%
Q3
28.05%
Median
15.36%
LPLA
6.97%
Q1
4.82%
Min
-28.52%
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Ares Capital (ARCC) vs. LPL Financial (LPLA): A comparison of their net margin against the Financial Services industry group benchmark.

Operating Margin (TTM)

Ares Capital (ARCC) at 72.74% carries a top-quartile operating margin, while LPL Financial (LPLA) at 10.85% operates in the bottom quartile.

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%

LPLA

Financial Services industry group

10.85%

Max
107.33%
Q3
55.90%
Median
30.09%
Q1
14.60%
LPLA
10.85%
Min
-44.34%
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Ares Capital (ARCC) vs. LPL Financial (LPLA): A comparison of their operating margin against the Financial Services industry group benchmark.

Profitability Metrics

Profitability metrics for Ares Capital (ARCC) and LPL Financial (LPLA)
MetricARCCLPLA
ROE (TTM)6.19%25.66%
ROA (TTM)4.78%7.35%
Net Margin (TTM)28.35%6.97%
Operating Margin (TTM)72.74%10.85%
Gross Margin (TTM)----

Growth

Revenue Growth

LPL Financial (LPLA) at 37.18% 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.

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Ares Capital (ARCC) vs. LPL Financial (LPLA): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Ares Capital (ARCC) at -23.77% and LPL Financial (LPLA) at -22.17% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Ares Capital (ARCC) vs. LPL Financial (LPLA): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Ares Capital (ARCC) and LPL Financial (LPLA)
MetricARCCLPLA
Revenue Growth (YoY)-12.08%37.18%
Revenue Growth (3Y CAGR)26.67%25.47%
EPS Growth (YoY)-23.77%-22.17%
EPS Growth (3Y CAGR)16.05%1.64%

Financial Strength

Current Ratio (MRQ)

current ratio doesn’t apply on either side: Ares Capital (ARCC) in Financial Services and LPL Financial (LPLA) 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 LPL Financial (LPLA) 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

Financial strength metrics for Ares Capital (ARCC) and LPL Financial (LPLA)
MetricARCCLPLA
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

LPL Financial (LPLA) at 0.40% 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%

LPLA

Financial Services industry group

0.40%

Max
9.77%
Q3
3.92%
Median
1.09%
LPLA
0.40%
Q1
0.00%
Min
0.00%
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Ares Capital (ARCC) vs. LPL Financial (LPLA): A comparison of their dividend yield against the Financial Services industry group benchmark.

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 LPL Financial (LPLA) reports 6.88%, 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%

LPLA

Financial Services industry group

6.88%

Max
241.07%
Q3
97.36%
Median
25.77%
LPLA
6.88%
Q1
0.00%
Min
0.00%
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Ares Capital (ARCC) vs. LPL Financial (LPLA): A comparison of their payout ratio against the Financial Services industry group benchmark.

Dividend Metrics

Dividend metrics for Ares Capital (ARCC) and LPL Financial (LPLA)
MetricARCCLPLA
Dividend Yield (TTM)9.92%0.40%
Dividend Payout Ratio (TTM)157.38%6.88%

Valuation

P/E Ratio (TTM)

Both Ares Capital (ARCC) at 15.68 and LPL Financial (LPLA) at 16.93 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

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

LPLA

Financial Services industry group

16.93

Max
45.85
Q3
24.64
LPLA
16.93
Median
15.37
Q1
9.68
Min
0.16
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Ares Capital (ARCC) vs. LPL Financial (LPLA): A comparison of their P/E ratio against the Financial Services industry group benchmark.

P/S Ratio (TTM)

LPL Financial (LPLA) at 1.15 sits in the cheaper P/S ratio quartile while Ares Capital (ARCC) at 4.48 prices around its industry’s middle — LPLA costs less per dollar of sales, though read it alongside growth and margins.

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

LPLA

Financial Services industry group

1.15

Max
9.23
Q3
4.57
Median
2.72
Q1
1.28
LPLA
1.15
Min
-0.55
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Ares Capital (ARCC) vs. LPL Financial (LPLA): A comparison of their P/S ratio against the Financial Services industry group benchmark.

P/B Ratio (MRQ)

Ares Capital (ARCC) at 0.99 is valued about in line with its industry on P/B ratio, while LPL Financial (LPLA) at 3.98 carries an above-peer premium to book — LPLA is pricier on assets.

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

LPLA

Financial Services industry group

3.98

Max
7.79
LPLA
3.98
Q3
3.63
Median
1.57
Q1
0.81
Min
-0.39
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Ares Capital (ARCC) vs. LPL Financial (LPLA): A comparison of their P/B ratio against the Financial Services industry group benchmark.

Valuation Metrics

Valuation metrics for Ares Capital (ARCC) and LPL Financial (LPLA)
MetricARCCLPLA
P/E Ratio (TTM)15.6816.93
P/S Ratio (TTM)4.481.15
P/B Ratio (MRQ)0.993.98
Free Cash Flow Yield (TTM)----