ARCC vs. MORN: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARCC and MORN, 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 MORN’s is 13.15 billion USD, indicating their market valuations are broadly comparable.
With betas of 0.73 for ARCC and 1.03 for MORN, both stocks show similar sensitivity to overall market movements.
| Symbol | ARCC | MORN |
|---|---|---|
| Company Name | Ares Capital Corporation | Morningstar, Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Financial - Data & Stock Exchanges |
| CEO | Kort Schnabel | Kunal Kapoor CFA |
| Price | 22.41 USD | 311.29 USD |
| Market Cap | 15.56 billion USD | 13.15 billion USD |
| Beta | 0.73 | 1.03 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | October 5, 2004 | May 3, 2005 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ARCC and MORN 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.
MORN
24.68%
Financial - Data & Stock Exchanges Industry
- Max
- 26.26%
- Q3
- 23.14%
- Median
- 14.33%
- Q1
- 11.12%
- Min
- -0.64%
In the upper quartile for the Financial - Data & Stock Exchanges industry, MORN’s Return on Equity of 24.68% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
MORN
14.84%
Financial - Data & Stock Exchanges Industry
- Max
- 18.31%
- Q3
- 14.86%
- Median
- 11.07%
- Q1
- 6.75%
- Min
- 4.04%
MORN’s Return on Invested Capital of 14.84% is in line with the norm for the Financial - Data & Stock Exchanges industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
MORN
16.61%
Financial - Data & Stock Exchanges Industry
- Max
- 39.08%
- Q3
- 31.63%
- Median
- 23.20%
- Q1
- 18.09%
- Min
- -0.88%
Falling into the lower quartile for the Financial - Data & Stock Exchanges industry, MORN’s Net Profit Margin of 16.61% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
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.
MORN
22.05%
Financial - Data & Stock Exchanges Industry
- Max
- 53.68%
- Q3
- 40.45%
- Median
- 31.81%
- Q1
- 24.66%
- Min
- 9.71%
MORN’s Operating Profit Margin of 22.05% is in the lower quartile for the Financial - Data & Stock Exchanges industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | ARCC | MORN |
|---|---|---|
| Return on Equity (TTM) | 11.03% | 24.68% |
| Return on Assets (TTM) | 5.08% | 10.71% |
| Return on Invested Capital (TTM) | 208.60% | 14.84% |
| Net Profit Margin (TTM) | 67.48% | 16.61% |
| Operating Profit Margin (TTM) | 91.13% | 22.05% |
| Gross Profit Margin (TTM) | 95.92% | 58.57% |
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.
MORN
1.11
Financial - Data & Stock Exchanges Industry
- Max
- 1.60
- Q3
- 1.57
- Median
- 1.06
- Q1
- 0.96
- Min
- 0.62
MORN’s Current Ratio of 1.11 aligns with the median group of the Financial - Data & Stock Exchanges 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.
MORN
0.62
Financial - Data & Stock Exchanges Industry
- Max
- 1.09
- Q3
- 0.80
- Median
- 0.62
- Q1
- 0.36
- Min
- 0.04
MORN’s Debt-to-Equity Ratio of 0.62 is typical for the Financial - Data & Stock Exchanges industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
MORN
14.20
Financial - Data & Stock Exchanges Industry
- Max
- 27.44
- Q3
- 22.05
- Median
- 10.08
- Q1
- 6.79
- Min
- 1.01
MORN’s Interest Coverage Ratio of 14.20 is positioned comfortably within the norm for the Financial - Data & Stock Exchanges industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ARCC | MORN |
|---|---|---|
| Current Ratio (TTM) | -- | 1.11 |
| Quick Ratio (TTM) | -- | 1.11 |
| Debt-to-Equity Ratio (TTM) | -- | 0.62 |
| Debt-to-Asset Ratio (TTM) | -- | 0.28 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.35 | 0.66 |
| Interest Coverage Ratio (TTM) | 3.77 | 14.20 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARCC and MORN. 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.
MORN
0.55%
Financial - Data & Stock Exchanges Industry
- Max
- 3.86%
- Q3
- 1.44%
- Median
- 1.06%
- Q1
- 0.73%
- Min
- 0.00%
MORN’s Dividend Yield of 0.55% is in the lower quartile for the Financial - Data & Stock Exchanges industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
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.
MORN
18.61%
Financial - Data & Stock Exchanges Industry
- Max
- 106.40%
- Q3
- 44.44%
- Median
- 31.97%
- Q1
- 29.26%
- Min
- 0.00%
MORN’s Dividend Payout Ratio of 18.61% is in the lower quartile for the Financial - Data & Stock Exchanges industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
Dividend at a Glance
| Symbol | ARCC | MORN |
|---|---|---|
| Dividend Yield (TTM) | 8.57% | 0.55% |
| Dividend Payout Ratio (TTM) | 81.85% | 18.61% |
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.
MORN
34.68
Financial - Data & Stock Exchanges Industry
- Max
- 41.71
- Q3
- 40.17
- Median
- 37.47
- Q1
- 30.61
- Min
- 16.74
MORN’s P/E Ratio of 34.68 is within the middle range for the Financial - Data & Stock Exchanges industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
MORN
2.34
Financial - Data & Stock Exchanges Industry
- Max
- 4.54
- Q3
- 4.09
- Median
- 4.06
- Q1
- 3.33
- Min
- 2.36
MORN’s Forward PEG Ratio of 2.34 is below the typical range for the Financial - Data & Stock Exchanges industry. This is a strong indicator that the stock may be undervalued, as its price appears low given its future growth prospects.
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.
MORN
5.69
Financial - Data & Stock Exchanges Industry
- Max
- 15.75
- Q3
- 12.42
- Median
- 9.37
- Q1
- 6.34
- Min
- 1.69
In the lower quartile for the Financial - Data & Stock Exchanges industry, MORN’s P/S Ratio of 5.69 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
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.
MORN
8.28
Financial - Data & Stock Exchanges Industry
- Max
- 8.57
- Q3
- 8.05
- Median
- 4.77
- Q1
- 3.69
- Min
- 1.19
MORN’s P/B Ratio of 8.28 is in the upper tier for the Financial - Data & Stock Exchanges industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | ARCC | MORN |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 10.53 | 34.68 |
| Forward PEG Ratio (TTM) | -7.92 | 2.34 |
| Price-to-Sales Ratio (P/S, TTM) | 7.30 | 5.69 |
| Price-to-Book Ratio (P/B, TTM) | 1.11 | 8.28 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -6.47 | 29.34 |
| EV-to-EBITDA (TTM) | 8.15 | 18.45 |
| EV-to-Sales (TTM) | 7.00 | 5.90 |