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ARCC vs. RKT: Ares Capital vs. Rocket Stock Comparison

How do Ares Capital (ARCC) and Rocket (RKT) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Ares Capital (ARCC) and Rocket (RKT) both fall under the Financial Services industry group, but ARCC is classified in Capital Markets while RKT is classified in Financial Services.

Ares Capital (ARCC) has more than two decades of public-market history since October 5, 2004, whereas Rocket (RKT) listed on August 6, 2020 and has a much shorter record to draw on.

Company profile comparison for Ares Capital (ARCC) and Rocket (RKT)
Profile ItemARCCRKT
NameAres Capital Corp.Rocket Companies Inc. Class A Common Stock
Country/RegionUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS Industry GroupFinancial ServicesFinancial Services
GICS IndustryCapital MarketsFinancial Services
GICS Sub-IndustryAsset Management & Custody BanksCommercial & Residential Mortgage Finance
Market Capitalization13.82 billion USD42.74 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateOctober 5, 2004August 6, 2020
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

ARCC
RKT
GSPC
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Ares Capital (ARCC) vs. Rocket (RKT), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Ares Capital (ARCC) and Rocket (RKT). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Ares Capital (ARCC) and Rocket (RKT). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Ares Capital (ARCC) and Rocket (RKT)
MetricARCCRKT
Total Return (1Y)5.40%-7.27%
Total Return (3Y, Annualized)9.48%26.30%
Total Return (5Y, Annualized)8.26%0.22%

Risk Profile

Drawdown History

ARCC
RKT
GSPC
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Ares Capital (ARCC) vs. Rocket (RKT), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Ares Capital (ARCC) and Rocket (RKT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Rocket (RKT) has a highly aggressive beta of 2.19, indicating much higher sensitivity to broad-market moves, while Ares Capital (ARCC) is defensive at 0.59 and tends to be less market-sensitive — a wide gap in beta profiles.

Risk profile metrics for Ares Capital (ARCC) and Rocket (RKT)
MetricARCCRKT
Volatility (1Y, Annualized)18.97%58.88%
Beta (5Y)0.592.19
Max Drawdown (5Y)-21.76%-59.90%
Avg. Volume (3M)4.45M34.27M

Risk-Adjusted Performance

Risk-Return Positioning

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ARCC and RKT are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Ares Capital (ARCC) and Rocket (RKT)
MetricARCCRKT
Sharpe Ratio (1Y)0.06-0.20
Sortino Ratio (1Y)0.09-0.29

Profitability

ROE (TTM)

Both Ares Capital (ARCC) at 6.19% and Rocket (RKT) at 7.86% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

ARCC

Financial Services industry group

6.19%

Max
44.78%
Q3
21.85%
Median
12.91%
ARCC
6.19%
Q1
4.48%
Min
-18.71%

RKT

Financial Services industry group

7.86%

Max
44.78%
Q3
21.85%
Median
12.91%
RKT
7.86%
Q1
4.48%
Min
-18.71%
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Ares Capital (ARCC) vs. Rocket (RKT): A comparison of their ROE against the Financial Services industry group benchmark.

Net Margin (TTM)

Ares Capital (ARCC) at 28.35% retains a top-quartile share of revenue as profit, ahead of Rocket (RKT) at 11.02%, which keeps about the industry-typical share.

ARCC

Financial Services industry group

28.35%

Max
62.84%
ARCC
28.35%
Q3
28.05%
Median
15.36%
Q1
4.82%
Min
-28.52%

RKT

Financial Services industry group

11.02%

Max
62.84%
Q3
28.05%
Median
15.36%
RKT
11.02%
Q1
4.82%
Min
-28.52%
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Ares Capital (ARCC) vs. Rocket (RKT): A comparison of their net margin against the Financial Services industry group benchmark.

Operating Margin (TTM)

Ares Capital (ARCC) at 72.74% operates in the top operating margin quartile, ahead of Rocket (RKT) at 43.54%, which runs around its industry’s norm.

ARCC

Financial Services industry group

72.74%

Max
107.33%
ARCC
72.74%
Q3
55.90%
Median
30.09%
Q1
14.60%
Min
-44.34%

RKT

Financial Services industry group

43.54%

Max
107.33%
Q3
55.90%
RKT
43.54%
Median
30.09%
Q1
14.60%
Min
-44.34%
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Ares Capital (ARCC) vs. Rocket (RKT): A comparison of their operating margin against the Financial Services industry group benchmark.

Profitability Metrics

Profitability metrics for Ares Capital (ARCC) and Rocket (RKT)
MetricARCCRKT
ROE (TTM)6.19%7.86%
ROA (TTM)4.78%4.45%
Net Margin (TTM)28.35%11.02%
Operating Margin (TTM)72.74%43.54%
Gross Margin (TTM)----

Growth

Revenue Growth

Rocket (RKT) at 26.87% sits in the top revenue growth quartile, while Ares Capital (ARCC) at -12.08% is in the bottom quartile, showing a clear gap in revenue momentum.

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Ares Capital (ARCC) vs. Rocket (RKT): A comparison of their Revenue Growth across different time periods.

EPS Growth

Ares Capital (ARCC) at -23.77% is around its peer norm for EPS growth, while Rocket (RKT) at -123.81% drops into the bottom quartile, signaling weaker earnings momentum.

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Ares Capital (ARCC) vs. Rocket (RKT): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Ares Capital (ARCC) and Rocket (RKT)
MetricARCCRKT
Revenue Growth (YoY)-12.08%26.87%
Revenue Growth (3Y CAGR)26.67%3.25%
EPS Growth (YoY)-23.77%-123.81%
EPS Growth (3Y CAGR)16.05%--

Financial Strength

Current Ratio (MRQ)

current ratio doesn’t apply on either side: Ares Capital (ARCC) in Financial Services and Rocket (RKT) in Financial Services both report balance sheets without a current/non-current split, so their short-term liquidity is better judged through regulatory and funding measures.

Debt / Equity (MRQ)

debt-to-equity ratio is set aside for both: Ares Capital (ARCC) in Financial Services and Rocket (RKT) in Financial Services run businesses where balance-sheet leverage is part of the model, so capital-adequacy and funding measures are the better gauges of balance-sheet risk.

Financial Strength Metrics

Financial strength metrics for Ares Capital (ARCC) and Rocket (RKT)
MetricARCCRKT
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Rocket (RKT) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Ares Capital (ARCC) reports a yield of 9.92%, ranking against industry peers normally.

ARCC

Financial Services industry group

9.92%

ARCC
9.92%
Max
9.77%
Q3
3.92%
Median
1.09%
Q1
0.00%
Min
0.00%

RKT

Financial Services industry group

0.00%

Max
9.77%
Q3
3.92%
Median
1.09%
RKT
0.00%
Q1
0.00%
Min
0.00%
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Ares Capital (ARCC) vs. Rocket (RKT): A comparison of their dividend yield against the Financial Services industry group benchmark.

Dividend Payout Ratio (TTM)

Ares Capital (ARCC) reports payout ratio above 100% at 157.38%, meaning dividends exceeded current-period earnings; Rocket (RKT) pays no dividend (payout 0.00%).

ARCC

Financial Services industry group

157.38%

Max
241.07%
ARCC
157.38%
Q3
97.36%
Median
25.77%
Q1
0.00%
Min
0.00%

RKT

Financial Services industry group

0.00%

Max
241.07%
Q3
97.36%
Median
25.77%
RKT
0.00%
Q1
0.00%
Min
0.00%
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Ares Capital (ARCC) vs. Rocket (RKT): A comparison of their payout ratio against the Financial Services industry group benchmark.

Dividend Metrics

Dividend metrics for Ares Capital (ARCC) and Rocket (RKT)
MetricARCCRKT
Dividend Yield (TTM)9.92%0.00%
Dividend Payout Ratio (TTM)157.38%0.00%

Valuation

P/E Ratio (TTM)

An earnings multiple is available for just one side: Ares Capital (ARCC) trades at 15.68 times trailing earnings, ranked against its peers, while Rocket (RKT) has no P/E ratio this period.

ARCC

Financial Services industry group

15.68

Max
45.85
Q3
24.64
ARCC
15.68
Median
15.37
Q1
9.68
Min
0.16

RKT

Financial Services industry group

--

Max
45.85
Q3
24.64
Median
15.37
Q1
9.68
Min
0.16
RKT
--
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Ares Capital (ARCC) vs. Rocket (RKT): RKT does not report P/E ratio, so it has no value marker; ARCC is benchmarked against the Financial Services industry group.

P/S Ratio (TTM)

On P/S ratio, both Ares Capital (ARCC) at 4.48 and Rocket (RKT) at 3.61 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

ARCC

Financial Services industry group

4.48

Max
9.23
Q3
4.57
ARCC
4.48
Median
2.72
Q1
1.28
Min
-0.55

RKT

Financial Services industry group

3.61

Max
9.23
Q3
4.57
RKT
3.61
Median
2.72
Q1
1.28
Min
-0.55
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Ares Capital (ARCC) vs. Rocket (RKT): A comparison of their P/S ratio against the Financial Services industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Ares Capital (ARCC) at 0.99 and Rocket (RKT) at 1.76 are valued close to their industries’ norm against book — neither stands out from peers.

ARCC

Financial Services industry group

0.99

Max
7.79
Q3
3.63
Median
1.57
ARCC
0.99
Q1
0.81
Min
-0.39

RKT

Financial Services industry group

1.76

Max
7.79
Q3
3.63
RKT
1.76
Median
1.57
Q1
0.81
Min
-0.39
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Ares Capital (ARCC) vs. Rocket (RKT): A comparison of their P/B ratio against the Financial Services industry group benchmark.

Valuation Metrics

Valuation metrics for Ares Capital (ARCC) and Rocket (RKT)
MetricARCCRKT
P/E Ratio (TTM)15.68--
P/S Ratio (TTM)4.483.61
P/B Ratio (MRQ)0.991.76
Free Cash Flow Yield (TTM)----