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ARCC vs. TW: Ares Capital vs. Tradeweb Markets Stock Comparison

How do Ares Capital (ARCC) and Tradeweb Markets (TW) 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 Tradeweb Markets (TW) both belong to the Capital Markets industry, though ARCC is classified under Asset Management & Custody Banks while TW falls under Financial Exchanges & Data.

Company profile comparison for Ares Capital (ARCC) and Tradeweb Markets (TW)
Profile ItemARCCTW
NameAres Capital Corp.Tradeweb Markets Inc. Class A Common Stock
Country/RegionUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS Industry GroupFinancial ServicesFinancial Services
GICS IndustryCapital MarketsCapital Markets
GICS Sub-IndustryAsset Management & Custody BanksFinancial Exchanges & Data
Market Capitalization13.82 billion USD27.59 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateOctober 5, 2004April 4, 2019
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

ARCC
TW
GSPC
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Ares Capital (ARCC) vs. Tradeweb Markets (TW), 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 Tradeweb Markets (TW). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Ares Capital (ARCC) and Tradeweb Markets (TW)
MetricARCCTW
Total Return (1Y)5.40%17.01%
Total Return (3Y, Annualized)9.48%11.65%
Total Return (5Y, Annualized)8.26%6.31%

Risk Profile

Drawdown History

ARCC
TW
GSPC
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Ares Capital (ARCC) vs. Tradeweb Markets (TW), 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 Tradeweb Markets (TW). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Ares Capital (ARCC) and Tradeweb Markets (TW)
MetricARCCTW
Volatility (1Y, Annualized)18.97%30.82%
Beta (5Y)0.590.54
Max Drawdown (5Y)-21.76%-48.64%
Avg. Volume (3M)4.45M1.37M

Risk-Adjusted Performance

Risk-Return Positioning

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ARCC and TW 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 Tradeweb Markets (TW)
MetricARCCTW
Sharpe Ratio (1Y)0.060.41
Sortino Ratio (1Y)0.090.60

Profitability

ROE (TTM)

Both Ares Capital (ARCC) at 6.19% and Tradeweb Markets (TW) at 14.46% 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%

TW

Financial Services industry group

14.46%

Max
44.78%
Q3
21.85%
TW
14.46%
Median
12.91%
Q1
4.48%
Min
-18.71%
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Ares Capital (ARCC) vs. Tradeweb Markets (TW): 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 Tradeweb Markets (TW) at 39.86% 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%

TW

Financial Services industry group

39.86%

Max
62.84%
TW
39.86%
Q3
28.05%
Median
15.36%
Q1
4.82%
Min
-28.52%
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Ares Capital (ARCC) vs. Tradeweb Markets (TW): 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 Tradeweb Markets (TW) at 43.30%, 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%

TW

Financial Services industry group

43.30%

Max
107.33%
Q3
55.90%
TW
43.30%
Median
30.09%
Q1
14.60%
Min
-44.34%
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Ares Capital (ARCC) vs. Tradeweb Markets (TW): A comparison of their operating margin against the Financial Services industry group benchmark.

Profitability Metrics

Profitability metrics for Ares Capital (ARCC) and Tradeweb Markets (TW)
MetricARCCTW
ROE (TTM)6.19%14.46%
ROA (TTM)4.78%12.57%
Net Margin (TTM)28.35%39.86%
Operating Margin (TTM)72.74%43.30%
Gross Margin (TTM)----

Growth

Revenue Growth

Tradeweb Markets (TW) at 18.92% 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.

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Ares Capital (ARCC) vs. Tradeweb Markets (TW): A comparison of their Revenue Growth across different time periods.

EPS Growth

Tradeweb Markets (TW) at 62.23% 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 TW.

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Ares Capital (ARCC) vs. Tradeweb Markets (TW): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Ares Capital (ARCC) and Tradeweb Markets (TW)
MetricARCCTW
Revenue Growth (YoY)-12.08%18.92%
Revenue Growth (3Y CAGR)26.67%19.97%
EPS Growth (YoY)-23.77%62.23%
EPS Growth (3Y CAGR)16.05%36.69%

Financial Strength

Current Ratio (MRQ)

current ratio doesn’t apply on either side: Ares Capital (ARCC) in Financial Services and Tradeweb Markets (TW) 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 Tradeweb Markets (TW) 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 Tradeweb Markets (TW)
MetricARCCTW
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Tradeweb Markets (TW) at 0.42% 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%

TW

Financial Services industry group

0.42%

Max
9.77%
Q3
3.92%
Median
1.09%
TW
0.42%
Q1
0.00%
Min
0.00%
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Ares Capital (ARCC) vs. Tradeweb Markets (TW): 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 Tradeweb Markets (TW) reports 12.68%, 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%

TW

Financial Services industry group

12.68%

Max
241.07%
Q3
97.36%
Median
25.77%
TW
12.68%
Q1
0.00%
Min
0.00%
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Ares Capital (ARCC) vs. Tradeweb Markets (TW): A comparison of their payout ratio against the Financial Services industry group benchmark.

Dividend Metrics

Dividend metrics for Ares Capital (ARCC) and Tradeweb Markets (TW)
MetricARCCTW
Dividend Yield (TTM)9.92%0.42%
Dividend Payout Ratio (TTM)157.38%12.68%

Valuation

P/E Ratio (TTM)

Ares Capital (ARCC) at 15.68 is near its industry’s usual P/E ratio, while Tradeweb Markets (TW) at 29.98 sits in the richer quartile — TW needs stronger growth or earnings quality to justify the premium.

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

TW

Financial Services industry group

29.98

Max
45.85
TW
29.98
Q3
24.64
Median
15.37
Q1
9.68
Min
0.16
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Ares Capital (ARCC) vs. Tradeweb Markets (TW): A comparison of their P/E ratio against the Financial Services industry group benchmark.

P/S Ratio (TTM)

Ares Capital (ARCC) at 4.48 prices around its industry’s typical P/S ratio, while Tradeweb Markets (TW) at 12.10 clears its benchmark range — TW looks notably rich on 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

TW

Financial Services industry group

12.10

TW
12.10
Max
9.23
Q3
4.57
Median
2.72
Q1
1.28
Min
-0.55
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Ares Capital (ARCC) vs. Tradeweb Markets (TW): A comparison of their P/S ratio against the Financial Services industry group benchmark.

P/B Ratio (MRQ)

Ares Capital (ARCC) at 0.99 is valued about in line with its industry on P/B ratio, while Tradeweb Markets (TW) at 4.03 carries an above-peer premium to book — TW is pricier on assets.

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

TW

Financial Services industry group

4.03

Max
7.79
TW
4.03
Q3
3.63
Median
1.57
Q1
0.81
Min
-0.39
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Ares Capital (ARCC) vs. Tradeweb Markets (TW): A comparison of their P/B ratio against the Financial Services industry group benchmark.

Valuation Metrics

Valuation metrics for Ares Capital (ARCC) and Tradeweb Markets (TW)
MetricARCCTW
P/E Ratio (TTM)15.6829.98
P/S Ratio (TTM)4.4812.10
P/B Ratio (MRQ)0.994.03
Free Cash Flow Yield (TTM)----