ARCC vs. PRH: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARCC and PRH, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
PRH’s market capitalization of 38.23 billion USD is significantly greater than ARCC’s 15.56 billion USD, highlighting its more substantial market valuation.
ARCC’s beta of 0.73 points to significantly higher volatility compared to PRH (beta: 0.31), suggesting ARCC has greater potential for both gains and losses relative to market movements.
| Symbol | ARCC | PRH |
|---|---|---|
| Company Name | Ares Capital Corporation | Prudential Financial, Inc. 5.95 |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Insurance - Life |
| CEO | Kort Schnabel | Charles Frederick Lowrey |
| Price | 22.41 USD | 25.21 USD |
| Market Cap | 15.56 billion USD | 38.23 billion USD |
| Beta | 0.73 | 0.31 |
| Exchange | NASDAQ | NYSE |
| IPO Date | October 5, 2004 | August 22, 2022 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ARCC and PRH 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.
PRH
-18.64%
Insurance - Life Industry
- Max
- 23.38%
- Q3
- 14.56%
- Median
- 11.23%
- Q1
- 1.67%
- Min
- -5.23%
PRH has a negative Return on Equity of -18.64%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
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.
PRH
44.99%
Insurance - Life Industry
- Max
- 6.30%
- Q3
- 3.33%
- Median
- 2.16%
- Q1
- 0.68%
- Min
- -0.10%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Life 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.
PRH
3.81%
Insurance - Life Industry
- Max
- 21.20%
- Q3
- 11.59%
- Median
- 7.10%
- Q1
- 3.79%
- Min
- 2.14%
PRH’s Net Profit Margin of 3.81% is aligned with the median group of its peers in the Insurance - Life 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.
PRH
37.35%
Insurance - Life Industry
- Max
- 38.96%
- Q3
- 37.28%
- Median
- 14.06%
- Q1
- 8.95%
- Min
- -1.68%
In the Insurance - Life industry, Operating Profit Margin is often not the primary measure of operational efficiency.
Profitability at a Glance
| Symbol | ARCC | PRH |
|---|---|---|
| Return on Equity (TTM) | 11.03% | -18.64% |
| Return on Assets (TTM) | 5.08% | 0.31% |
| Return on Invested Capital (TTM) | 208.60% | 44.99% |
| Net Profit Margin (TTM) | 67.48% | 3.81% |
| Operating Profit Margin (TTM) | 91.13% | 37.35% |
| Gross Profit Margin (TTM) | 95.92% | 81.26% |
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.
PRH
3.15
Insurance - Life Industry
- Max
- 843.97
- Q3
- 821.68
- Median
- 6.06
- Q1
- 3.15
- Min
- 0.47
PRH’s Current Ratio of 3.15 aligns with the median group of the Insurance - Life industry, indicating that its short-term liquidity is in line with its sector peers.
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.
PRH
10.37
Insurance - Life Industry
- Max
- 0.86
- Q3
- 0.83
- Median
- 0.55
- Q1
- 0.37
- Min
- 0.27
With a Debt-to-Equity Ratio of 10.37, PRH operates with exceptionally high leverage compared to the Insurance - Life industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
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.
PRH
--
Insurance - Life Industry
- Max
- 37.82
- Q3
- 19.50
- Median
- 6.25
- Q1
- 2.29
- Min
- -0.76
Interest Coverage Ratio data for PRH is currently unavailable.
Financial Strength at a Glance
| Symbol | ARCC | PRH |
|---|---|---|
| Current Ratio (TTM) | -- | 3.15 |
| Quick Ratio (TTM) | -- | 3.15 |
| Debt-to-Equity Ratio (TTM) | -- | 10.37 |
| Debt-to-Asset Ratio (TTM) | -- | 0.03 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.35 | 11.17 |
| Interest Coverage Ratio (TTM) | 3.77 | -- |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARCC and PRH. 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.
PRH
5.90%
Insurance - Life Industry
- Max
- 10.36%
- Q3
- 4.76%
- Median
- 2.40%
- Q1
- 1.51%
- Min
- 0.00%
With a Dividend Yield of 5.90%, PRH offers a more attractive income stream than most of its peers in the Insurance - Life industry, signaling a strong commitment to shareholder returns.
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.
PRH
82.49%
Insurance - Life Industry
- Max
- 203.94%
- Q3
- 64.38%
- Median
- 29.88%
- Q1
- 19.14%
- Min
- 0.00%
PRH’s Dividend Payout Ratio of 82.49% is in the upper quartile for the Insurance - Life 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 | PRH |
|---|---|---|
| Dividend Yield (TTM) | 8.57% | 5.90% |
| Dividend Payout Ratio (TTM) | 81.85% | 82.49% |
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.
PRH
3.92
Insurance - Life Industry
- Max
- 17.82
- Q3
- 16.08
- Median
- 12.43
- Q1
- 7.33
- Min
- 3.69
In the lower quartile for the Insurance - Life industry, PRH’s P/E Ratio of 3.92 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
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.
PRH
0.52
Insurance - Life Industry
- Max
- 3.81
- Q3
- 1.95
- Median
- 0.97
- Q1
- 0.53
- Min
- 0.24
In the lower quartile for the Insurance - Life industry, PRH’s Forward PEG Ratio of 0.52 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
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.
PRH
0.63
Insurance - Life Industry
- Max
- 3.84
- Q3
- 2.89
- Median
- 1.06
- Q1
- 0.63
- Min
- 0.31
PRH’s P/S Ratio of 0.63 aligns with the market consensus for the Insurance - Life 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.
PRH
4.46
Insurance - Life Industry
- Max
- 3.87
- Q3
- 2.13
- Median
- 1.49
- Q1
- 0.95
- Min
- 0.38
At 4.46, PRH’s P/B Ratio is at an extreme premium to the Insurance - Life 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.
Valuation at a Glance
| Symbol | ARCC | PRH |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 10.53 | 3.92 |
| Forward PEG Ratio (TTM) | -7.92 | 0.52 |
| Price-to-Sales Ratio (P/S, TTM) | 7.30 | 0.63 |
| Price-to-Book Ratio (P/B, TTM) | 1.11 | 4.46 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -6.47 | 49.33 |
| EV-to-EBITDA (TTM) | 8.15 | 98.65 |
| EV-to-Sales (TTM) | 7.00 | 0.71 |