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ARCC vs. NU: A Head-to-Head Stock Comparison

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Here’s a clear look at ARCC and NU, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolARCCNU
Company NameAres Capital CorporationNu Holdings Ltd.
CountryUnited StatesBrazil
GICS SectorFinancialsFinancials
GICS IndustryCapital MarketsBanks
Market Capitalization15.74 billion USD70.75 billion USD
ExchangeNasdaqGSNYSE
Listing DateOctober 5, 2004December 9, 2021
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of ARCC and NU 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.

ARCC vs. NU: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolARCCNU
5-Day Price Return0.22%7.10%
13-Week Price Return1.55%22.61%
26-Week Price Return-4.17%35.31%
52-Week Price Return6.39%0.07%
Month-to-Date Return-1.41%19.80%
Year-to-Date Return1.92%41.31%
10-Day Avg. Volume2.89M72.19M
3-Month Avg. Volume3.78M60.91M
3-Month Volatility12.58%43.41%
Beta0.751.08

Profitability

Return on Equity (TTM)

ARCC

10.05%

Capital Markets Industry

Max
38.97%
Q3
21.61%
Median
13.77%
Q1
8.31%
Min
-4.25%

ARCC’s Return on Equity of 10.05% is on par with the norm for the Capital Markets industry, indicating its profitability relative to shareholder equity is typical for the sector.

NU

27.49%

Banks Industry

Max
26.37%
Q3
15.92%
Median
12.25%
Q1
8.69%
Min
0.15%

NU’s Return on Equity of 27.49% is exceptionally high, placing it well beyond the typical range for the Banks industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

ARCC vs. NU: A comparison of their Return on Equity (TTM) against their respective Capital Markets and Banks industry benchmarks.

Net Profit Margin (TTM)

ARCC

44.94%

Capital Markets Industry

Max
66.67%
Q3
35.11%
Median
23.49%
Q1
13.63%
Min
-15.18%

A Net Profit Margin of 44.94% places ARCC in the upper quartile for the Capital Markets industry, signifying strong profitability and more effective cost management than most of its peers.

NU

17.90%

Banks Industry

Max
54.20%
Q3
35.70%
Median
28.97%
Q1
22.53%
Min
6.98%

Falling into the lower quartile for the Banks industry, NU’s Net Profit Margin of 17.90% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

ARCC vs. NU: A comparison of their Net Profit Margin (TTM) against their respective Capital Markets and Banks industry benchmarks.

Operating Profit Margin (TTM)

ARCC

48.72%

Capital Markets Industry

Max
86.40%
Q3
46.46%
Median
32.80%
Q1
18.32%
Min
-21.87%

An Operating Profit Margin of 48.72% places ARCC in the upper quartile for the Capital Markets industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

NU

24.64%

Banks Industry

Max
63.35%
Q3
44.59%
Median
37.24%
Q1
28.25%
Min
13.37%

NU’s Operating Profit Margin of 24.64% is in the lower quartile for the Banks industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

ARCC vs. NU: A comparison of their Operating Profit Margin (TTM) against their respective Capital Markets and Banks industry benchmarks.

Profitability at a Glance

SymbolARCCNU
Return on Equity (TTM)10.05%27.49%
Return on Assets (TTM)4.80%4.27%
Net Profit Margin (TTM)44.94%17.90%
Operating Profit Margin (TTM)48.72%24.64%
Gross Profit Margin (TTM)50.28%43.42%

Financial Strength

Current Ratio (MRQ)

ARCC

1.07

Capital Markets Industry

Max
3.76
Q3
1.89
Median
1.01
Q1
0.54
Min
-0.41

For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

NU

0.18

Banks Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

For the Banks industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

ARCC vs. NU: A comparison of their Current Ratio (MRQ) against their respective Capital Markets and Banks industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ARCC

1.01

Capital Markets Industry

Max
6.62
Q3
2.84
Median
1.02
Q1
0.32
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.

NU

4.18

Banks Industry

Max
4.75
Q3
2.62
Median
1.02
Q1
0.39
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Banks industry.

ARCC vs. NU: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Capital Markets and Banks industry benchmarks.

Interest Coverage Ratio (TTM)

ARCC

2.48

Capital Markets Industry

Max
126.03
Q3
60.98
Median
11.77
Q1
4.95
Min
-36.26

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.

NU

-0.91

Banks Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks industry.

ARCC vs. NU: A comparison of their Interest Coverage Ratio (TTM) against their respective Capital Markets and Banks industry benchmarks.

Financial Strength at a Glance

SymbolARCCNU
Current Ratio (MRQ)1.070.18
Quick Ratio (MRQ)1.070.18
Debt-to-Equity Ratio (MRQ)1.014.18
Interest Coverage Ratio (TTM)2.48-0.91

Growth

Revenue Growth

ARCC vs. NU: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ARCC vs. NU: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ARCC

7.69%

Capital Markets Industry

Max
10.26%
Q3
4.86%
Median
2.78%
Q1
1.22%
Min
0.00%

With a Dividend Yield of 7.69%, ARCC offers a more attractive income stream than most of its peers in the Capital Markets industry, signaling a strong commitment to shareholder returns.

NU

0.00%

Banks Industry

Max
10.27%
Q3
5.83%
Median
3.81%
Q1
2.50%
Min
0.00%

NU currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

ARCC vs. NU: A comparison of their Dividend Yield (TTM) against their respective Capital Markets and Banks industry benchmarks.

Dividend Payout Ratio (TTM)

ARCC

89.80%

Capital Markets Industry

Max
200.72%
Q3
101.92%
Median
57.97%
Q1
32.36%
Min
0.00%

ARCC’s Dividend Payout Ratio of 89.80% is within the typical range for the Capital Markets industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

NU

0.00%

Banks Industry

Max
147.07%
Q3
80.55%
Median
54.40%
Q1
35.71%
Min
0.00%

NU has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

ARCC vs. NU: A comparison of their Dividend Payout Ratio (TTM) against their respective Capital Markets and Banks industry benchmarks.

Dividend at a Glance

SymbolARCCNU
Dividend Yield (TTM)7.69%0.00%
Dividend Payout Ratio (TTM)89.80%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

ARCC

11.68

Capital Markets Industry

Max
58.89
Q3
31.00
Median
18.54
Q1
12.09
Min
5.24

In the lower quartile for the Capital Markets industry, ARCC’s P/E Ratio of 11.68 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

NU

28.53

Banks Industry

Max
20.05
Q3
12.65
Median
10.21
Q1
7.54
Min
2.74

At 28.53, NU’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Banks industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ARCC vs. NU: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Capital Markets and Banks industry benchmarks.

Price-to-Sales Ratio (TTM)

ARCC

5.25

Capital Markets Industry

Max
14.49
Q3
7.41
Median
4.68
Q1
2.25
Min
0.04

ARCC’s P/S Ratio of 5.25 aligns with the market consensus for the Capital Markets industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

NU

5.11

Banks Industry

Max
5.06
Q3
2.98
Median
2.24
Q1
1.59
Min
0.45

The P/S Ratio is often not a primary valuation tool in the Banks industry.

ARCC vs. NU: A comparison of their Price-to-Sales Ratio (TTM) against their respective Capital Markets and Banks industry benchmarks.

Price-to-Book Ratio (MRQ)

ARCC

1.09

Capital Markets Industry

Max
9.48
Q3
4.94
Median
2.42
Q1
1.21
Min
0.38

ARCC’s P/B Ratio of 1.09 is in the lower quartile for the Capital Markets industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

NU

6.90

Banks Industry

Max
2.18
Q3
1.36
Median
1.09
Q1
0.81
Min
0.20

At 6.90, NU’s P/B Ratio is at an extreme premium to the Banks industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

ARCC vs. NU: A comparison of their Price-to-Book Ratio (MRQ) against their respective Capital Markets and Banks industry benchmarks.

Valuation at a Glance

SymbolARCCNU
Price-to-Earnings Ratio (TTM)11.6828.53
Price-to-Sales Ratio (TTM)5.255.11
Price-to-Book Ratio (MRQ)1.096.90
Price-to-Free Cash Flow Ratio (TTM)17.2113.78