Seek Returns

ARCC vs. SCHW: Ares Capital vs. Charles Schwab Stock Comparison

How do Ares Capital (ARCC) and Charles Schwab (SCHW) 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 Charles Schwab (SCHW) both belong to the Capital Markets industry, though ARCC is classified under Asset Management & Custody Banks while SCHW falls under Investment Banking & Brokerage.

Company profile comparison for Ares Capital (ARCC) and Charles Schwab (SCHW)
Profile ItemARCCSCHW
NameAres Capital Corp.The Charles Schwab Corporation
Country/RegionUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS Industry GroupFinancial ServicesFinancial Services
GICS IndustryCapital MarketsCapital Markets
GICS Sub-IndustryAsset Management & Custody BanksInvestment Banking & Brokerage
Market Capitalization13.82 billion USD158.22 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateOctober 5, 2004September 22, 1987
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

ARCC
SCHW
GSPC
Loading price history…
Ares Capital (ARCC) vs. Charles Schwab (SCHW), 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

Loading price history…
Trailing total returns for Ares Capital (ARCC) and Charles Schwab (SCHW). Returns over one year are annualized.

Calendar-Year Returns

Loading price history…
Calendar-year total returns for Ares Capital (ARCC) and Charles Schwab (SCHW). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Ares Capital (ARCC) and Charles Schwab (SCHW)
MetricARCCSCHW
Total Return (1Y)5.40%-0.80%
Total Return (3Y, Annualized)9.48%21.35%
Total Return (5Y, Annualized)8.26%4.31%

Risk Profile

Drawdown History

ARCC
SCHW
GSPC
Loading price history…
Ares Capital (ARCC) vs. Charles Schwab (SCHW), 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

Loading price history…
Distribution of monthly total returns for Ares Capital (ARCC) and Charles Schwab (SCHW). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Ares Capital (ARCC) and Charles Schwab (SCHW)
MetricARCCSCHW
Volatility (1Y, Annualized)18.97%26.01%
Beta (5Y)0.590.74
Max Drawdown (5Y)-21.76%-49.70%
Avg. Volume (3M)4.45M8.22M

Risk-Adjusted Performance

Risk-Return Positioning

Loading chart…
ARCC and SCHW 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 Charles Schwab (SCHW)
MetricARCCSCHW
Sharpe Ratio (1Y)0.06-0.20
Sortino Ratio (1Y)0.09-0.26

Profitability

ROE (TTM)

Both Ares Capital (ARCC) at 6.19% and Charles Schwab (SCHW) at 21.12% 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%

SCHW

Financial Services industry group

21.12%

Max
44.78%
Q3
21.85%
SCHW
21.12%
Median
12.91%
Q1
4.48%
Min
-18.71%
Loading chart…
Ares Capital (ARCC) vs. Charles Schwab (SCHW): A comparison of their ROE against the Financial Services industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both Ares Capital (ARCC) at 28.35% and Charles Schwab (SCHW) at 39.33% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

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%

SCHW

Financial Services industry group

39.33%

Max
62.84%
SCHW
39.33%
Q3
28.05%
Median
15.36%
Q1
4.82%
Min
-28.52%
Loading chart…
Ares Capital (ARCC) vs. Charles Schwab (SCHW): 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 Charles Schwab (SCHW) at 52.67%, 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%

SCHW

Financial Services industry group

52.67%

Max
107.33%
Q3
55.90%
SCHW
52.67%
Median
30.09%
Q1
14.60%
Min
-44.34%
Loading chart…
Ares Capital (ARCC) vs. Charles Schwab (SCHW): A comparison of their operating margin against the Financial Services industry group benchmark.

Profitability Metrics

Profitability metrics for Ares Capital (ARCC) and Charles Schwab (SCHW)
MetricARCCSCHW
ROE (TTM)6.19%21.12%
ROA (TTM)4.78%2.16%
Net Margin (TTM)28.35%39.33%
Operating Margin (TTM)72.74%52.67%
Gross Margin (TTM)----

Growth

Revenue Growth

Charles Schwab (SCHW) at 22.01% is around its peer norm for revenue growth, while Ares Capital (ARCC) at -12.08% drops into the bottom quartile, signaling weaker demand or pricing momentum.

Loading chart…
Ares Capital (ARCC) vs. Charles Schwab (SCHW): A comparison of their Revenue Growth across different time periods.

EPS Growth

Charles Schwab (SCHW) at 55.52% sits in the top EPS growth quartile, while Ares Capital (ARCC) at -23.77% is closer to the peer norm — faster per-share earnings growth for SCHW.

Loading chart…
Ares Capital (ARCC) vs. Charles Schwab (SCHW): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Ares Capital (ARCC) and Charles Schwab (SCHW)
MetricARCCSCHW
Revenue Growth (YoY)-12.08%22.01%
Revenue Growth (3Y CAGR)26.67%4.83%
EPS Growth (YoY)-23.77%55.52%
EPS Growth (3Y CAGR)16.05%9.93%

Financial Strength

Current Ratio (MRQ)

current ratio doesn’t apply on either side: Ares Capital (ARCC) in Financial Services and Charles Schwab (SCHW) 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 Charles Schwab (SCHW) 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 Charles Schwab (SCHW)
MetricARCCSCHW
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Charles Schwab (SCHW) at 1.33% pays an industry-typical yield; Ares Capital (ARCC) at 9.92% is above its entire peer range — the higher number, but one that calls for a look at payout sustainability before treating it as an advantage.

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%

SCHW

Financial Services industry group

1.33%

Max
9.77%
Q3
3.92%
SCHW
1.33%
Median
1.09%
Q1
0.00%
Min
0.00%
Loading chart…
Ares Capital (ARCC) vs. Charles Schwab (SCHW): 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 and sustainability needs extra context. Meanwhile Charles Schwab (SCHW) reports 21.03%, ranking against industry peers normally.

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%

SCHW

Financial Services industry group

21.03%

Max
241.07%
Q3
97.36%
Median
25.77%
SCHW
21.03%
Q1
0.00%
Min
0.00%
Loading chart…
Ares Capital (ARCC) vs. Charles Schwab (SCHW): A comparison of their payout ratio against the Financial Services industry group benchmark.

Dividend Metrics

Dividend metrics for Ares Capital (ARCC) and Charles Schwab (SCHW)
MetricARCCSCHW
Dividend Yield (TTM)9.92%1.33%
Dividend Payout Ratio (TTM)157.38%21.03%

Valuation

P/E Ratio (TTM)

Both Ares Capital (ARCC) at 15.68 and Charles Schwab (SCHW) at 15.64 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

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

SCHW

Financial Services industry group

15.64

Max
45.85
Q3
24.64
SCHW
15.64
Median
15.37
Q1
9.68
Min
0.16
Loading chart…
Ares Capital (ARCC) vs. Charles Schwab (SCHW): A comparison of their P/E ratio against the Financial Services industry group benchmark.

P/S Ratio (TTM)

Ares Capital (ARCC) at 4.48 is priced about in line with its industry on P/S ratio, while Charles Schwab (SCHW) at 5.85 sits in the pricier quartile — SCHW costs more per dollar of sales.

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

SCHW

Financial Services industry group

5.85

Max
9.23
SCHW
5.85
Q3
4.57
Median
2.72
Q1
1.28
Min
-0.55
Loading chart…
Ares Capital (ARCC) vs. Charles Schwab (SCHW): 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 Charles Schwab (SCHW) at 3.08 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

SCHW

Financial Services industry group

3.08

Max
7.79
Q3
3.63
SCHW
3.08
Median
1.57
Q1
0.81
Min
-0.39
Loading chart…
Ares Capital (ARCC) vs. Charles Schwab (SCHW): A comparison of their P/B ratio against the Financial Services industry group benchmark.

Valuation Metrics

Valuation metrics for Ares Capital (ARCC) and Charles Schwab (SCHW)
MetricARCCSCHW
P/E Ratio (TTM)15.6815.64
P/S Ratio (TTM)4.485.85
P/B Ratio (MRQ)0.993.08
Free Cash Flow Yield (TTM)----