ARCC vs. PRU: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARCC and PRU, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
PRU’s market capitalization of 38.61 billion USD is significantly greater than ARCC’s 15.56 billion USD, highlighting its more substantial market valuation.
With betas of 0.73 for ARCC and 1.05 for PRU, both stocks show similar sensitivity to overall market movements.
| Symbol | ARCC | PRU |
|---|---|---|
| Company Name | Ares Capital Corporation | Prudential Financial, Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Insurance - Life |
| CEO | Kort Schnabel | Andrew Francis Sullivan |
| Price | 22.41 USD | 109.08 USD |
| Market Cap | 15.56 billion USD | 38.61 billion USD |
| Beta | 0.73 | 1.05 |
| Exchange | NASDAQ | NYSE |
| IPO Date | October 5, 2004 | December 13, 2001 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ARCC and PRU 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.
PRU
7.90%
Insurance - Life Industry
- Max
- 23.38%
- Q3
- 14.56%
- Median
- 11.23%
- Q1
- 1.67%
- Min
- -5.23%
PRU’s Return on Equity of 7.90% is on par with the norm for the Insurance - Life 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.
PRU
0.32%
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.
PRU
3.79%
Insurance - Life Industry
- Max
- 21.20%
- Q3
- 11.59%
- Median
- 7.10%
- Q1
- 3.79%
- Min
- 2.14%
Falling into the lower quartile for the Insurance - Life industry, PRU’s Net Profit Margin of 3.79% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
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.
PRU
4.52%
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 | PRU |
|---|---|---|
| Return on Equity (TTM) | 11.03% | 7.90% |
| Return on Assets (TTM) | 5.08% | 0.31% |
| Return on Invested Capital (TTM) | 208.60% | 0.32% |
| Net Profit Margin (TTM) | 67.48% | 3.79% |
| Operating Profit Margin (TTM) | 91.13% | 4.52% |
| Gross Profit Margin (TTM) | 95.92% | 27.02% |
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.
PRU
6.06
Insurance - Life Industry
- Max
- 843.97
- Q3
- 821.68
- Median
- 6.06
- Q1
- 3.15
- Min
- 0.47
PRU’s Current Ratio of 6.06 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.
PRU
0.75
Insurance - Life Industry
- Max
- 0.86
- Q3
- 0.83
- Median
- 0.55
- Q1
- 0.37
- Min
- 0.27
PRU’s Debt-to-Equity Ratio of 0.75 is typical for the Insurance - Life 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.
PRU
--
Insurance - Life Industry
- Max
- 37.82
- Q3
- 19.50
- Median
- 6.25
- Q1
- 2.29
- Min
- -0.76
Interest Coverage Ratio data for PRU is currently unavailable.
Financial Strength at a Glance
| Symbol | ARCC | PRU |
|---|---|---|
| Current Ratio (TTM) | -- | 6.06 |
| Quick Ratio (TTM) | -- | 6.06 |
| Debt-to-Equity Ratio (TTM) | -- | 0.75 |
| Debt-to-Asset Ratio (TTM) | -- | 0.03 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.35 | 2.47 |
| Interest Coverage Ratio (TTM) | 3.77 | -- |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARCC and PRU. 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.
PRU
4.86%
Insurance - Life Industry
- Max
- 10.36%
- Q3
- 4.76%
- Median
- 2.40%
- Q1
- 1.51%
- Min
- 0.00%
With a Dividend Yield of 4.86%, PRU 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.
PRU
82.71%
Insurance - Life Industry
- Max
- 203.94%
- Q3
- 64.38%
- Median
- 29.88%
- Q1
- 19.14%
- Min
- 0.00%
PRU’s Dividend Payout Ratio of 82.71% 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 | PRU |
|---|---|---|
| Dividend Yield (TTM) | 8.57% | 4.86% |
| Dividend Payout Ratio (TTM) | 81.85% | 82.71% |
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.
PRU
16.83
Insurance - Life Industry
- Max
- 17.82
- Q3
- 16.08
- Median
- 12.43
- Q1
- 7.33
- Min
- 3.69
A P/E Ratio of 16.83 places PRU in the upper quartile for the Insurance - Life 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.
PRU
2.22
Insurance - Life Industry
- Max
- 3.81
- Q3
- 1.95
- Median
- 0.97
- Q1
- 0.53
- Min
- 0.24
A Forward PEG Ratio of 2.22 places PRU in the upper quartile for the Insurance - Life industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
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.
PRU
0.64
Insurance - Life Industry
- Max
- 3.84
- Q3
- 2.89
- Median
- 1.06
- Q1
- 0.63
- Min
- 0.31
PRU’s P/S Ratio of 0.64 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.
PRU
1.29
Insurance - Life Industry
- Max
- 3.87
- Q3
- 2.13
- Median
- 1.49
- Q1
- 0.95
- Min
- 0.38
PRU’s P/B Ratio of 1.29 is within the conventional range for the Insurance - Life 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 | PRU |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 10.53 | 16.83 |
| Forward PEG Ratio (TTM) | -7.92 | 2.22 |
| Price-to-Sales Ratio (P/S, TTM) | 7.30 | 0.64 |
| Price-to-Book Ratio (P/B, TTM) | 1.11 | 1.29 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -6.47 | 49.82 |
| EV-to-EBITDA (TTM) | 8.15 | 17.53 |
| EV-to-Sales (TTM) | 7.00 | 0.74 |