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ARCC vs. MS: Ares Capital vs. Morgan Stanley Stock Comparison

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

Company profile comparison for Ares Capital (ARCC) and Morgan Stanley (MS)
Profile ItemARCCMS
NameAres Capital Corp.Morgan Stanley Common Stock
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 USD283.60 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateOctober 5, 2004February 23, 1993
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

ARCC
MS
GSPC
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Ares Capital (ARCC) vs. Morgan Stanley (MS), 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 Morgan Stanley (MS). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Ares Capital (ARCC) and Morgan Stanley (MS)
MetricARCCMS
Total Return (1Y)5.40%19.44%
Total Return (3Y, Annualized)9.48%40.69%
Total Return (5Y, Annualized)8.26%17.38%

Risk Profile

Drawdown History

ARCC
MS
GSPC
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Ares Capital (ARCC) vs. Morgan Stanley (MS), 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 Morgan Stanley (MS). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Ares Capital (ARCC) and Morgan Stanley (MS)
MetricARCCMS
Volatility (1Y, Annualized)18.97%29.73%
Beta (5Y)0.591.21
Max Drawdown (5Y)-21.76%-32.38%
Avg. Volume (3M)4.45M5.37M

Risk-Adjusted Performance

Risk-Return Positioning

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ARCC and MS 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 Morgan Stanley (MS)
MetricARCCMS
Sharpe Ratio (1Y)0.060.51
Sortino Ratio (1Y)0.090.73

Profitability

ROE (TTM)

Both Ares Capital (ARCC) at 6.19% and Morgan Stanley (MS) at 18.04% 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%

MS

Financial Services industry group

18.04%

Max
44.78%
Q3
21.85%
MS
18.04%
Median
12.91%
Q1
4.48%
Min
-18.71%
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Ares Capital (ARCC) vs. Morgan Stanley (MS): 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 Morgan Stanley (MS) at 25.63%, 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%

MS

Financial Services industry group

25.63%

Max
62.84%
Q3
28.05%
MS
25.63%
Median
15.36%
Q1
4.82%
Min
-28.52%
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Ares Capital (ARCC) vs. Morgan Stanley (MS): A comparison of their net margin against the Financial Services industry group benchmark.

Operating Margin (TTM)

Ares Capital (ARCC) at 72.74% operates in the top operating margin quartile, ahead of Morgan Stanley (MS) at 39.00%, 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%

MS

Financial Services industry group

39.00%

Max
107.33%
Q3
55.90%
MS
39.00%
Median
30.09%
Q1
14.60%
Min
-44.34%
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Ares Capital (ARCC) vs. Morgan Stanley (MS): A comparison of their operating margin against the Financial Services industry group benchmark.

Profitability Metrics

Profitability metrics for Ares Capital (ARCC) and Morgan Stanley (MS)
MetricARCCMS
ROE (TTM)6.19%18.04%
ROA (TTM)4.78%1.35%
Net Margin (TTM)28.35%25.63%
Operating Margin (TTM)72.74%39.00%
Gross Margin (TTM)----

Growth

Revenue Growth

Morgan Stanley (MS) at 14.48% is around its peer norm for revenue growth, while Ares Capital (ARCC) at -12.08% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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Ares Capital (ARCC) vs. Morgan Stanley (MS): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Ares Capital (ARCC) at -23.77% and Morgan Stanley (MS) at 28.43% 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. Morgan Stanley (MS): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Ares Capital (ARCC) and Morgan Stanley (MS)
MetricARCCMS
Revenue Growth (YoY)-12.08%14.48%
Revenue Growth (3Y CAGR)26.67%9.52%
EPS Growth (YoY)-23.77%28.43%
EPS Growth (3Y CAGR)16.05%18.41%

Financial Strength

Current Ratio (MRQ)

current ratio doesn’t apply on either side: Ares Capital (ARCC) in Financial Services and Morgan Stanley (MS) 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 Morgan Stanley (MS) 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 Morgan Stanley (MS)
MetricARCCMS
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Morgan Stanley (MS) at 2.40% 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%

MS

Financial Services industry group

2.40%

Max
9.77%
Q3
3.92%
MS
2.40%
Median
1.09%
Q1
0.00%
Min
0.00%
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Ares Capital (ARCC) vs. Morgan Stanley (MS): 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 Morgan Stanley (MS) reports 32.91%, 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%

MS

Financial Services industry group

32.91%

Max
241.07%
Q3
97.36%
MS
32.91%
Median
25.77%
Q1
0.00%
Min
0.00%
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Ares Capital (ARCC) vs. Morgan Stanley (MS): A comparison of their payout ratio against the Financial Services industry group benchmark.

Dividend Metrics

Dividend metrics for Ares Capital (ARCC) and Morgan Stanley (MS)
MetricARCCMS
Dividend Yield (TTM)9.92%2.40%
Dividend Payout Ratio (TTM)157.38%32.91%

Valuation

P/E Ratio (TTM)

Both Ares Capital (ARCC) at 15.68 and Morgan Stanley (MS) at 14.39 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

MS

Financial Services industry group

14.39

Max
45.85
Q3
24.64
Median
15.37
MS
14.39
Q1
9.68
Min
0.16
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Ares Capital (ARCC) vs. Morgan Stanley (MS): A comparison of their P/E ratio against the Financial Services industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Ares Capital (ARCC) at 4.48 and Morgan Stanley (MS) at 3.55 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

MS

Financial Services industry group

3.55

Max
9.23
Q3
4.57
MS
3.55
Median
2.72
Q1
1.28
Min
-0.55
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Ares Capital (ARCC) vs. Morgan Stanley (MS): A comparison of their P/S ratio against the Financial Services industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Ares Capital (ARCC) at 0.99 and Morgan Stanley (MS) at 2.65 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

MS

Financial Services industry group

2.65

Max
7.79
Q3
3.63
MS
2.65
Median
1.57
Q1
0.81
Min
-0.39
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Ares Capital (ARCC) vs. Morgan Stanley (MS): A comparison of their P/B ratio against the Financial Services industry group benchmark.

Valuation Metrics

Valuation metrics for Ares Capital (ARCC) and Morgan Stanley (MS)
MetricARCCMS
P/E Ratio (TTM)15.6814.39
P/S Ratio (TTM)4.483.55
P/B Ratio (MRQ)0.992.65
Free Cash Flow Yield (TTM)----