ARCC vs. RNR: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARCC and RNR, 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 RNR’s is 11.72 billion USD, indicating their market valuations are broadly comparable.
ARCC’s beta of 0.73 points to significantly higher volatility compared to RNR (beta: 0.32), suggesting ARCC has greater potential for both gains and losses relative to market movements.
| Symbol | ARCC | RNR |
|---|---|---|
| Company Name | Ares Capital Corporation | RenaissanceRe Holdings Ltd. |
| Country | US | BM |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Insurance - Reinsurance |
| CEO | Kort Schnabel | Kevin Joseph O'Donnell |
| Price | 22.41 USD | 240.9 USD |
| Market Cap | 15.56 billion USD | 11.72 billion USD |
| Beta | 0.73 | 0.32 |
| Exchange | NASDAQ | NYSE |
| IPO Date | October 5, 2004 | July 27, 1995 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ARCC and RNR 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.
RNR
15.74%
Insurance - Reinsurance Industry
- Max
- 18.30%
- Q3
- 14.16%
- Median
- 8.39%
- Q1
- 7.08%
- Min
- 5.91%
In the upper quartile for the Insurance - Reinsurance industry, RNR’s Return on Equity of 15.74% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
RNR
78.41%
Insurance - Reinsurance Industry
- Max
- 126.30%
- Q3
- 60.66%
- Median
- 7.25%
- Q1
- 3.18%
- Min
- 0.62%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Reinsurance 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.
RNR
13.54%
Insurance - Reinsurance Industry
- Max
- 21.27%
- Q3
- 12.90%
- Median
- 9.40%
- Q1
- 5.62%
- Min
- 3.77%
A Net Profit Margin of 13.54% places RNR in the upper quartile for the Insurance - Reinsurance industry, signifying strong profitability and more effective cost management than most of its peers.
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.
RNR
17.83%
Insurance - Reinsurance Industry
- Max
- 17.83%
- Q3
- 15.41%
- Median
- 8.11%
- Q1
- 5.86%
- Min
- 4.12%
An Operating Profit Margin of 17.83% places RNR in the upper quartile for the Insurance - Reinsurance industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ARCC | RNR |
|---|---|---|
| Return on Equity (TTM) | 11.03% | 15.74% |
| Return on Assets (TTM) | 5.08% | 3.11% |
| Return on Invested Capital (TTM) | 208.60% | 78.41% |
| Net Profit Margin (TTM) | 67.48% | 13.54% |
| Operating Profit Margin (TTM) | 91.13% | 17.83% |
| Gross Profit Margin (TTM) | 95.92% | 99.89% |
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.
RNR
--
Insurance - Reinsurance Industry
- Max
- --
- Q3
- --
- Median
- --
- Q1
- --
- Min
- --
Current Ratio data for RNR is currently unavailable.
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.
RNR
--
Insurance - Reinsurance Industry
- Max
- --
- Q3
- --
- Median
- --
- Q1
- --
- Min
- --
Debt-to-Equity Ratio data for RNR is currently unavailable.
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.
RNR
22.46
Insurance - Reinsurance Industry
- Max
- 22.46
- Q3
- 18.27
- Median
- 5.57
- Q1
- 4.93
- Min
- 3.41
RNR’s Interest Coverage Ratio of 22.46 is in the upper quartile for the Insurance - Reinsurance industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ARCC | RNR |
|---|---|---|
| Current Ratio (TTM) | -- | -- |
| Quick Ratio (TTM) | -- | -- |
| Debt-to-Equity Ratio (TTM) | -- | -- |
| Debt-to-Asset Ratio (TTM) | -- | -- |
| Net Debt-to-EBITDA Ratio (TTM) | -0.35 | -0.68 |
| Interest Coverage Ratio (TTM) | 3.77 | 22.46 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARCC and RNR. 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.
RNR
0.66%
Insurance - Reinsurance Industry
- Max
- 2.38%
- Q3
- 1.52%
- Median
- 0.33%
- Q1
- 0.00%
- Min
- 0.00%
RNR’s Dividend Yield of 0.66% is consistent with its peers in the Insurance - Reinsurance 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.
RNR
6.92%
Insurance - Reinsurance Industry
- Max
- 40.35%
- Q3
- 23.76%
- Median
- 7.09%
- Q1
- 1.73%
- Min
- 0.00%
RNR’s Dividend Payout Ratio of 6.92% is within the typical range for the Insurance - Reinsurance industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ARCC | RNR |
|---|---|---|
| Dividend Yield (TTM) | 8.57% | 0.66% |
| Dividend Payout Ratio (TTM) | 81.85% | 6.92% |
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.
RNR
7.37
Insurance - Reinsurance Industry
- Max
- 16.92
- Q3
- 16.06
- Median
- 12.86
- Q1
- 8.23
- Min
- 5.12
In the lower quartile for the Insurance - Reinsurance industry, RNR’s P/E Ratio of 7.37 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.
RNR
0.38
Insurance - Reinsurance Industry
- Max
- 1.52
- Q3
- 1.04
- Median
- 0.71
- Q1
- 0.38
- Min
- 0.20
In the lower quartile for the Insurance - Reinsurance industry, RNR’s Forward PEG Ratio of 0.38 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.
RNR
0.95
Insurance - Reinsurance Industry
- Max
- 1.18
- Q3
- 1.07
- Median
- 0.91
- Q1
- 0.83
- Min
- 0.62
The P/S Ratio is often not a primary valuation tool in the Insurance - Reinsurance industry.
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.
RNR
1.19
Insurance - Reinsurance Industry
- Max
- 1.19
- Q3
- 1.18
- Median
- 1.08
- Q1
- 0.93
- Min
- 0.73
RNR’s P/B Ratio of 1.19 is in the upper tier for the Insurance - Reinsurance industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | ARCC | RNR |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 10.53 | 7.37 |
| Forward PEG Ratio (TTM) | -7.92 | 0.38 |
| Price-to-Sales Ratio (P/S, TTM) | 7.30 | 0.95 |
| Price-to-Book Ratio (P/B, TTM) | 1.11 | 1.19 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -6.47 | 3.22 |
| EV-to-EBITDA (TTM) | 8.15 | 4.18 |
| EV-to-Sales (TTM) | 7.00 | 0.82 |