ARCC vs. NLY: Ares Capital vs. Annaly Capital Management Stock Comparison

Company Profile

Ares Capital (ARCC) and Annaly Capital Management (NLY) both fall under the Financial Services industry group, but ARCC is classified in Capital Markets while NLY is classified in Mortgage Real Estate Investment Trusts (REITs).

Ares Capital (ARCC) is an ordinary operating company, while Annaly Capital Management (NLY) is a REIT — read its payout ratio and P/E alongside FFO (funds from operations) rather than comparing them directly to ARCC’s multiples.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Both Ares Capital (ARCC) at 6.19% and Annaly Capital Management (NLY) at 7.35% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

Annaly Capital Management (NLY) at 80.27% keeps the most of each sales dollar — above its industry’s net margin range — and Ares Capital (ARCC) at 28.35% also retains a top-quartile share.

Both Ares Capital (ARCC) at 72.74% and Annaly Capital Management (NLY) at 107.33% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

Profitability Metrics

Growth

Annaly Capital Management (NLY) at 87.29% delivers above-range revenue growth, while Ares Capital (ARCC) at -12.08% falls into the bottom quartile — a wide split in revenue momentum.

Annaly Capital Management (NLY) at 80.25% sits in the top EPS growth quartile, while Ares Capital (ARCC) at -23.77% is closer to the peer norm — faster per-share earnings growth for NLY.

Growth Metrics

Financial Strength

current ratio doesn’t apply on either side: Ares Capital (ARCC) in Financial Services and Annaly Capital Management (NLY) 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-to-equity ratio is set aside for both: Ares Capital (ARCC) in Financial Services and Annaly Capital Management (NLY) 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

Dividends

Both Ares Capital (ARCC) at 9.92% and Annaly Capital Management (NLY) at 15.38% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

Both Ares Capital (ARCC) at 157.38% and Annaly Capital Management (NLY) at 201.39% report payout ratio above 100%, meaning dividends exceeded current-period earnings on both sides.

Dividend Metrics

Valuation

Both Ares Capital (ARCC) at 15.68 and Annaly Capital Management (NLY) at 13.02 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

Ares Capital (ARCC) at 4.48 prices around its industry’s typical P/S ratio, while Annaly Capital Management (NLY) at 10.62 clears its benchmark range — NLY looks notably rich on sales.

On P/B ratio, both Ares Capital (ARCC) at 0.99 and Annaly Capital Management (NLY) at 1.05 are valued close to their industries’ norm against book — neither stands out from peers.

Valuation Metrics