ARCC vs. TW: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARCC and TW, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
TW’s market capitalization of 32.86 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 0.84 for TW, both stocks show similar sensitivity to overall market movements.
| Symbol | ARCC | TW |
|---|---|---|
| Company Name | Ares Capital Corporation | Tradeweb Markets Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Financial - Capital Markets |
| CEO | Kort Schnabel | William E. Hult |
| Price | 22.41 USD | 138.98 USD |
| Market Cap | 15.56 billion USD | 32.86 billion USD |
| Beta | 0.73 | 0.84 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | October 5, 2004 | April 4, 2019 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ARCC and TW 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.
TW
9.08%
Financial - Capital Markets Industry
- Max
- 42.02%
- Q3
- 20.69%
- Median
- 13.73%
- Q1
- 3.33%
- Min
- -21.32%
TW’s Return on Equity of 9.08% is on par with the norm for the Financial - Capital Markets 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.
TW
8.03%
Financial - Capital Markets Industry
- Max
- 30.24%
- Q3
- 13.34%
- Median
- 6.20%
- Q1
- -1.71%
- Min
- -16.91%
Return on Invested Capital is often not a primary measure of capital efficiency in the Financial - Capital Markets 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.
TW
28.67%
Financial - Capital Markets Industry
- Max
- 28.67%
- Q3
- 13.52%
- Median
- 10.47%
- Q1
- 0.24%
- Min
- -9.55%
A Net Profit Margin of 28.67% places TW in the upper quartile for the Financial - Capital Markets 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.
TW
39.21%
Financial - Capital Markets Industry
- Max
- 56.86%
- Q3
- 25.29%
- Median
- 15.90%
- Q1
- 0.51%
- Min
- -19.18%
An Operating Profit Margin of 39.21% places TW in the upper quartile for the Financial - Capital Markets 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 | TW |
|---|---|---|
| Return on Equity (TTM) | 11.03% | 9.08% |
| Return on Assets (TTM) | 5.08% | 7.11% |
| Return on Invested Capital (TTM) | 208.60% | 8.03% |
| Net Profit Margin (TTM) | 67.48% | 28.67% |
| Operating Profit Margin (TTM) | 91.13% | 39.21% |
| Gross Profit Margin (TTM) | 95.92% | 70.49% |
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.
TW
2.82
Financial - Capital Markets Industry
- Max
- 4.60
- Q3
- 3.24
- Median
- 1.32
- Q1
- 0.96
- Min
- 0.05
For the Financial - Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
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.
TW
0.01
Financial - Capital Markets Industry
- Max
- 3.63
- Q3
- 1.68
- Median
- 0.37
- Q1
- 0.09
- Min
- 0.00
Falling into the lower quartile for the Financial - Capital Markets industry, TW’s Debt-to-Equity Ratio of 0.01 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
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.
TW
227.55
Financial - Capital Markets Industry
- Max
- 12.71
- Q3
- 7.94
- Median
- 1.92
- Q1
- 0.24
- Min
- -7.71
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial - Capital Markets industry.
Financial Strength at a Glance
| Symbol | ARCC | TW |
|---|---|---|
| Current Ratio (TTM) | -- | 2.82 |
| Quick Ratio (TTM) | -- | 2.82 |
| Debt-to-Equity Ratio (TTM) | -- | 0.01 |
| Debt-to-Asset Ratio (TTM) | -- | 0.00 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.35 | -1.25 |
| Interest Coverage Ratio (TTM) | 3.77 | 227.55 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARCC and TW. 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.
TW
0.32%
Financial - Capital Markets Industry
- Max
- 5.86%
- Q3
- 1.74%
- Median
- 0.79%
- Q1
- 0.00%
- Min
- 0.00%
TW’s Dividend Yield of 0.32% is consistent with its peers in the Financial - Capital Markets 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.
TW
17.09%
Financial - Capital Markets Industry
- Max
- 128.06%
- Q3
- 43.11%
- Median
- 12.56%
- Q1
- 0.00%
- Min
- 0.00%
TW’s Dividend Payout Ratio of 17.09% is within the typical range for the Financial - Capital Markets industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ARCC | TW |
|---|---|---|
| Dividend Yield (TTM) | 8.57% | 0.32% |
| Dividend Payout Ratio (TTM) | 81.85% | 17.09% |
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.
TW
56.54
Financial - Capital Markets Industry
- Max
- 42.65
- Q3
- 29.09
- Median
- 20.52
- Q1
- 14.58
- Min
- 8.28
At 56.54, TW’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Financial - Capital Markets industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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.
TW
3.88
Financial - Capital Markets Industry
- Max
- 4.05
- Q3
- 2.46
- Median
- 1.52
- Q1
- 0.78
- Min
- 0.02
A Forward PEG Ratio of 3.88 places TW in the upper quartile for the Financial - Capital Markets 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.
TW
17.99
Financial - Capital Markets Industry
- Max
- 14.34
- Q3
- 7.63
- Median
- 2.98
- Q1
- 1.50
- Min
- 0.04
The P/S Ratio is often not a primary valuation tool in the Financial - Capital Markets 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.
TW
4.99
Financial - Capital Markets Industry
- Max
- 9.60
- Q3
- 6.00
- Median
- 2.91
- Q1
- 1.84
- Min
- 0.53
TW’s P/B Ratio of 4.99 is within the conventional range for the Financial - Capital Markets 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 | TW |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 10.53 | 56.54 |
| Forward PEG Ratio (TTM) | -7.92 | 3.88 |
| Price-to-Sales Ratio (P/S, TTM) | 7.30 | 17.99 |
| Price-to-Book Ratio (P/B, TTM) | 1.11 | 4.99 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -6.47 | 38.81 |
| EV-to-EBITDA (TTM) | 8.15 | 31.06 |
| EV-to-Sales (TTM) | 7.00 | 17.29 |