ARCC vs. PFG: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARCC and PFG, 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 PFG’s is 18.16 billion USD, indicating their market valuations are broadly comparable.
With betas of 0.73 for ARCC and 1.00 for PFG, both stocks show similar sensitivity to overall market movements.
| Symbol | ARCC | PFG |
|---|---|---|
| Company Name | Ares Capital Corporation | Principal Financial Group, Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Insurance - Diversified |
| CEO | Kort Schnabel | Deanna Dawnette Strable-Soethout |
| Price | 22.41 USD | 81 USD |
| Market Cap | 15.56 billion USD | 18.16 billion USD |
| Beta | 0.73 | 1.00 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | October 5, 2004 | October 23, 2001 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ARCC and PFG 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.
PFG
9.76%
Insurance - Diversified Industry
- Max
- 19.59%
- Q3
- 17.66%
- Median
- 12.77%
- Q1
- 7.56%
- Min
- -4.43%
PFG’s Return on Equity of 9.76% is on par with the norm for the Insurance - Diversified industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
PFG
-10.51%
Insurance - Diversified Industry
- Max
- 32.46%
- Q3
- 16.21%
- Median
- 9.46%
- Q1
- 2.09%
- Min
- -10.51%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Diversified industry.
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.
PFG
6.89%
Insurance - Diversified Industry
- Max
- 26.00%
- Q3
- 19.46%
- Median
- 9.37%
- Q1
- 5.55%
- Min
- -7.05%
PFG’s Net Profit Margin of 6.89% is aligned with the median group of its peers in the Insurance - Diversified industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
PFG
8.19%
Insurance - Diversified Industry
- Max
- 44.52%
- Q3
- 25.84%
- Median
- 14.16%
- Q1
- 6.78%
- Min
- -2.60%
PFG’s Operating Profit Margin of 8.19% is around the midpoint for the Insurance - Diversified industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ARCC | PFG |
|---|---|---|
| Return on Equity (TTM) | 11.03% | 9.76% |
| Return on Assets (TTM) | 5.08% | 0.35% |
| Return on Invested Capital (TTM) | 208.60% | -10.51% |
| Net Profit Margin (TTM) | 67.48% | 6.89% |
| Operating Profit Margin (TTM) | 91.13% | 8.19% |
| Gross Profit Margin (TTM) | 95.92% | 43.07% |
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.
PFG
0.21
Insurance - Diversified Industry
- Max
- 4.41
- Q3
- 4.03
- Median
- 2.86
- Q1
- 2.82
- Min
- 2.82
PFG’s Current Ratio of 0.21 is notably low, falling beneath the typical range for the Insurance - Diversified industry. This suggests a heightened liquidity risk and could indicate potential challenges in meeting its short-term obligations.
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.
PFG
0.39
Insurance - Diversified Industry
- Max
- 0.54
- Q3
- 0.39
- Median
- 0.27
- Q1
- 0.21
- Min
- 0.13
PFG’s Debt-to-Equity Ratio of 0.39 is typical for the Insurance - Diversified 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.
PFG
--
Insurance - Diversified Industry
- Max
- 19.23
- Q3
- 17.46
- Median
- 7.97
- Q1
- 4.61
- Min
- -1.63
Interest Coverage Ratio data for PFG is currently unavailable.
Financial Strength at a Glance
| Symbol | ARCC | PFG |
|---|---|---|
| Current Ratio (TTM) | -- | 0.21 |
| Quick Ratio (TTM) | -- | 0.21 |
| Debt-to-Equity Ratio (TTM) | -- | 0.39 |
| Debt-to-Asset Ratio (TTM) | -- | 0.01 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.35 | 0.37 |
| Interest Coverage Ratio (TTM) | 3.77 | -- |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARCC and PFG. 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.
PFG
3.65%
Insurance - Diversified Industry
- Max
- 8.16%
- Q3
- 5.54%
- Median
- 2.46%
- Q1
- 1.59%
- Min
- 0.00%
PFG’s Dividend Yield of 3.65% is consistent with its peers in the Insurance - Diversified industry, providing a dividend return that is standard for its sector.
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.
PFG
61.20%
Insurance - Diversified Industry
- Max
- 101.86%
- Q3
- 53.36%
- Median
- 21.69%
- Q1
- 5.33%
- Min
- 0.00%
PFG’s Dividend Payout Ratio of 61.20% is in the upper quartile for the Insurance - Diversified industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ARCC | PFG |
|---|---|---|
| Dividend Yield (TTM) | 8.57% | 3.65% |
| Dividend Payout Ratio (TTM) | 81.85% | 61.20% |
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.
PFG
16.77
Insurance - Diversified Industry
- Max
- 18.52
- Q3
- 16.13
- Median
- 13.33
- Q1
- 9.73
- Min
- 2.62
A P/E Ratio of 16.77 places PFG in the upper quartile for the Insurance - Diversified industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
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.
PFG
1.54
Insurance - Diversified Industry
- Max
- 2.60
- Q3
- 2.07
- Median
- 1.20
- Q1
- 0.77
- Min
- 0.04
PFG’s Forward PEG Ratio of 1.54 is within the middle range of its peers in the Insurance - Diversified industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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.
PFG
1.15
Insurance - Diversified Industry
- Max
- 3.08
- Q3
- 2.00
- Median
- 1.15
- Q1
- 1.07
- Min
- 0.38
PFG’s P/S Ratio of 1.15 aligns with the market consensus for the Insurance - Diversified industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
PFG
1.62
Insurance - Diversified Industry
- Max
- 2.12
- Q3
- 1.80
- Median
- 1.59
- Q1
- 1.29
- Min
- 0.74
PFG’s P/B Ratio of 1.62 is within the conventional range for the Insurance - Diversified 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.
Valuation at a Glance
| Symbol | ARCC | PFG |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 10.53 | 16.77 |
| Forward PEG Ratio (TTM) | -7.92 | 1.54 |
| Price-to-Sales Ratio (P/S, TTM) | 7.30 | 1.15 |
| Price-to-Book Ratio (P/B, TTM) | 1.11 | 1.62 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -6.47 | 3.69 |
| EV-to-EBITDA (TTM) | 8.15 | 14.43 |
| EV-to-Sales (TTM) | 7.00 | 1.18 |