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

Updated on August 22, 2025

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

Company Profile

ARCC is a standard domestic listing, while NWG trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

Symbol	ARCC	NWG
Company Name	Ares Capital Corporation	NatWest Group plc
Country	United States	United Kingdom
GICS Sector	Financials	Financials
GICS Industry	Capital Markets	Banks
Market Capitalization	15.72 billion USD	60.85 billion USD
Exchange	NasdaqGS	NYSE
Listing Date	October 5, 2004	October 18, 2007
Security Type	Common Stock	ADR

Historical Performance

This chart compares the performance of ARCC and NWG 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. NWG: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	ARCC	NWG
5-Day Price Return	-1.63%	0.92%
13-Week Price Return	1.73%	6.05%
26-Week Price Return	-3.42%	25.17%
52-Week Price Return	6.96%	57.86%
Month-to-Date Return	-1.50%	3.80%
Year-to-Date Return	1.83%	36.04%
10-Day Avg. Volume	3.42M	10.74M
3-Month Avg. Volume	3.93M	19.24M
3-Month Volatility	13.02%	25.27%
Beta	0.76	1.45

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.

NWG

13.01%

Banks Industry

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

NWG’s Return on Equity of 13.01% is on par with the norm for the Banks industry, indicating its profitability relative to shareholder equity is typical for the sector.

ARCC vs. NWG: 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.

NWG

31.24%

Banks Industry

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

NWG’s Net Profit Margin of 31.24% is aligned with the median group of its peers in the Banks industry. This indicates its ability to convert revenue into profit is typical for the sector.

ARCC vs. NWG: 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.

NWG

40.79%

Banks Industry

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

NWG’s Operating Profit Margin of 40.79% is around the midpoint for the Banks industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

Symbol	ARCC	NWG
Return on Equity (TTM)	10.05%	13.01%
Return on Assets (TTM)	4.80%	0.73%
Net Profit Margin (TTM)	44.94%	31.24%
Operating Profit Margin (TTM)	48.72%	40.79%
Gross Profit Margin (TTM)	50.28%	--

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.

NWG

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. NWG: 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.

NWG

2.77

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. NWG: 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.

NWG

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

Financial Strength at a Glance

Symbol	ARCC	NWG
Current Ratio (MRQ)	1.07	--
Quick Ratio (MRQ)	1.07	--
Debt-to-Equity Ratio (MRQ)	1.01	2.77
Interest Coverage Ratio (TTM)	2.48	--

Growth

Revenue Growth

ARCC vs. NWG: 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. NWG: 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.

NWG

0.00%

Banks Industry

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

NWG 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. NWG: 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.

NWG

48.52%

Banks Industry

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

NWG’s Dividend Payout Ratio of 48.52% is within the typical range for the Banks industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

Symbol	ARCC	NWG
Dividend Yield (TTM)	7.69%	0.00%
Dividend Payout Ratio (TTM)	89.80%	48.52%

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.

NWG

8.41

Banks Industry

Max: 20.05
Q3: 12.65
Median: 10.21
Q1: 7.54
Min: 2.74

NWG’s P/E Ratio of 8.41 is within the middle range for the Banks industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ARCC vs. NWG: 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.

NWG

1.17

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. NWG: 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.

NWG

0.99

Banks Industry

Max: 2.18
Q3: 1.36
Median: 1.09
Q1: 0.81
Min: 0.20

NWG’s P/B Ratio of 0.99 is within the conventional range for the Banks industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

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

Valuation at a Glance

Symbol	ARCC	NWG
Price-to-Earnings Ratio (TTM)	11.68	8.41
Price-to-Sales Ratio (TTM)	5.25	1.17
Price-to-Book Ratio (MRQ)	1.09	0.99
Price-to-Free Cash Flow Ratio (TTM)	17.21	8.62