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ARCC vs. RNR: A Head-to-Head Stock Comparison

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Here’s a clear look at ARCC and RNR, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolARCCRNR
Company NameAres Capital CorporationRenaissanceRe Holdings Ltd.
CountryUnited StatesBermuda
GICS SectorFinancialsFinancials
GICS IndustryCapital MarketsInsurance
Market Capitalization14.21 billion USD12.21 billion USD
ExchangeNasdaqGSNYSE
Listing DateOctober 5, 2004July 27, 1995
Security TypeCommon StockCommon Stock

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.

ARCC vs. RNR: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolARCCRNR
5-Day Price Return-1.42%3.71%
13-Week Price Return-10.08%7.73%
26-Week Price Return-9.07%8.13%
52-Week Price Return-3.31%-5.74%
Month-to-Date Return-1.27%2.20%
Year-to-Date Return-7.95%4.30%
10-Day Avg. Volume5.92M0.36M
3-Month Avg. Volume4.03M0.43M
3-Month Volatility15.43%18.93%
Beta0.640.28

Profitability

Return on Equity (TTM)

ARCC

10.05%

Capital Markets Industry

Max
38.97%
Q3
22.24%
Median
13.52%
Q1
8.61%
Min
-4.25%

ARCC’s Return on Equity of 10.05% is on par with the norm for the Capital Markets industry, indicating its profitability relative to shareholder equity is typical for the sector.

RNR

18.60%

Insurance Industry

Max
30.96%
Q3
18.76%
Median
14.22%
Q1
10.34%
Min
1.73%

RNR’s Return on Equity of 18.60% is on par with the norm for the Insurance industry, indicating its profitability relative to shareholder equity is typical for the sector.

ARCC vs. RNR: A comparison of their Return on Equity (TTM) against their respective Capital Markets and Insurance industry benchmarks.

Net Profit Margin (TTM)

ARCC

44.94%

Capital Markets Industry

Max
69.91%
Q3
37.24%
Median
24.30%
Q1
13.06%
Min
-15.18%

A Net Profit Margin of 44.94% places ARCC in the upper quartile for the Capital Markets industry, signifying strong profitability and more effective cost management than most of its peers.

RNR

15.97%

Insurance Industry

Max
26.78%
Q3
14.69%
Median
9.87%
Q1
6.59%
Min
-3.51%

A Net Profit Margin of 15.97% places RNR in the upper quartile for the Insurance industry, signifying strong profitability and more effective cost management than most of its peers.

ARCC vs. RNR: A comparison of their Net Profit Margin (TTM) against their respective Capital Markets and Insurance industry benchmarks.

Operating Profit Margin (TTM)

ARCC

48.72%

Capital Markets Industry

Max
84.86%
Q3
47.16%
Median
32.23%
Q1
18.65%
Min
-21.87%

An Operating Profit Margin of 48.72% places ARCC in the upper quartile for the Capital Markets industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

RNR

20.72%

Insurance Industry

Max
34.52%
Q3
20.17%
Median
14.46%
Q1
9.62%
Min
-2.51%

In the Insurance industry, Operating Profit Margin is often not the primary measure of operational efficiency.

ARCC vs. RNR: A comparison of their Operating Profit Margin (TTM) against their respective Capital Markets and Insurance industry benchmarks.

Profitability at a Glance

SymbolARCCRNR
Return on Equity (TTM)10.05%18.60%
Return on Assets (TTM)4.80%3.77%
Net Profit Margin (TTM)44.94%15.97%
Operating Profit Margin (TTM)48.72%20.72%
Gross Profit Margin (TTM)50.28%--

Financial Strength

Current Ratio (MRQ)

ARCC

1.07

Capital Markets Industry

Max
3.37
Q3
1.81
Median
1.01
Q1
0.56
Min
0.04

For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

RNR

0.57

Insurance Industry

Max
2.97
Q3
1.37
Median
0.54
Q1
0.15
Min
0.00

For the Insurance industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

ARCC vs. RNR: A comparison of their Current Ratio (MRQ) against their respective Capital Markets and Insurance industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ARCC

1.01

Capital Markets Industry

Max
6.52
Q3
2.79
Median
0.96
Q1
0.28
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.

RNR

0.21

Insurance Industry

Max
1.25
Q3
0.65
Median
0.34
Q1
0.23
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Insurance industry.

ARCC vs. RNR: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Capital Markets and Insurance industry benchmarks.

Interest Coverage Ratio (TTM)

ARCC

2.48

Capital Markets Industry

Max
107.59
Q3
48.41
Median
10.85
Q1
4.56
Min
-36.26

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.

RNR

11.16

Insurance Industry

Max
43.68
Q3
21.45
Median
9.67
Q1
3.55
Min
-5.73

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Insurance industry.

ARCC vs. RNR: A comparison of their Interest Coverage Ratio (TTM) against their respective Capital Markets and Insurance industry benchmarks.

Financial Strength at a Glance

SymbolARCCRNR
Current Ratio (MRQ)1.070.57
Quick Ratio (MRQ)1.070.57
Debt-to-Equity Ratio (MRQ)1.010.21
Interest Coverage Ratio (TTM)2.4811.16

Growth

Revenue Growth

ARCC vs. RNR: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ARCC vs. RNR: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ARCC

8.45%

Capital Markets Industry

Max
9.02%
Q3
4.54%
Median
2.55%
Q1
1.27%
Min
0.00%

With a Dividend Yield of 8.45%, ARCC offers a more attractive income stream than most of its peers in the Capital Markets industry, signaling a strong commitment to shareholder returns.

RNR

0.94%

Insurance Industry

Max
9.80%
Q3
5.18%
Median
3.58%
Q1
2.07%
Min
0.00%

RNR’s Dividend Yield of 0.94% is in the lower quartile for the Insurance industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

ARCC vs. RNR: A comparison of their Dividend Yield (TTM) against their respective Capital Markets and Insurance industry benchmarks.

Dividend Payout Ratio (TTM)

ARCC

89.80%

Capital Markets Industry

Max
199.38%
Q3
99.28%
Median
60.67%
Q1
32.00%
Min
0.00%

ARCC’s Dividend Payout Ratio of 89.80% is within the typical range for the Capital Markets industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

RNR

3.90%

Insurance Industry

Max
169.40%
Q3
85.57%
Median
53.26%
Q1
23.68%
Min
0.00%

RNR’s Dividend Payout Ratio of 3.90% is in the lower quartile for the Insurance industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

ARCC vs. RNR: A comparison of their Dividend Payout Ratio (TTM) against their respective Capital Markets and Insurance industry benchmarks.

Dividend at a Glance

SymbolARCCRNR
Dividend Yield (TTM)8.45%0.94%
Dividend Payout Ratio (TTM)89.80%3.90%

Valuation

Price-to-Earnings Ratio (TTM)

ARCC

10.63

Capital Markets Industry

Max
51.69
Q3
29.42
Median
17.58
Q1
12.55
Min
5.59

In the lower quartile for the Capital Markets industry, ARCC’s P/E Ratio of 10.63 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

RNR

6.09

Insurance Industry

Max
30.75
Q3
18.11
Median
12.67
Q1
9.66
Min
2.87

In the lower quartile for the Insurance industry, RNR’s P/E Ratio of 6.09 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

ARCC vs. RNR: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Capital Markets and Insurance industry benchmarks.

Price-to-Sales Ratio (TTM)

ARCC

4.78

Capital Markets Industry

Max
14.65
Q3
7.29
Median
4.53
Q1
2.26
Min
0.04

ARCC’s P/S Ratio of 4.78 aligns with the market consensus for the Capital Markets industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

RNR

0.97

Insurance Industry

Max
3.41
Q3
1.88
Median
1.22
Q1
0.80
Min
0.23

RNR’s P/S Ratio of 0.97 aligns with the market consensus for the Insurance industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ARCC vs. RNR: A comparison of their Price-to-Sales Ratio (TTM) against their respective Capital Markets and Insurance industry benchmarks.

Price-to-Book Ratio (MRQ)

ARCC

1.09

Capital Markets Industry

Max
10.83
Q3
5.12
Median
2.66
Q1
1.19
Min
0.37

ARCC’s P/B Ratio of 1.09 is in the lower quartile for the Capital Markets industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

RNR

1.09

Insurance Industry

Max
4.57
Q3
2.56
Median
1.88
Q1
1.20
Min
0.17

RNR’s P/B Ratio of 1.09 is in the lower quartile for the Insurance industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

ARCC vs. RNR: A comparison of their Price-to-Book Ratio (MRQ) against their respective Capital Markets and Insurance industry benchmarks.

Valuation at a Glance

SymbolARCCRNR
Price-to-Earnings Ratio (TTM)10.636.09
Price-to-Sales Ratio (TTM)4.780.97
Price-to-Book Ratio (MRQ)1.091.09
Price-to-Free Cash Flow Ratio (TTM)15.673.12