ARCC vs. UNM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARCC and UNM, 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 UNM’s is 14.32 billion USD, indicating their market valuations are broadly comparable.
ARCC’s beta of 0.73 points to significantly higher volatility compared to UNM (beta: 0.42), suggesting ARCC has greater potential for both gains and losses relative to market movements.
| Symbol | ARCC | UNM |
|---|---|---|
| Company Name | Ares Capital Corporation | Unum Group |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Insurance - Life |
| CEO | Kort Schnabel | Richard Paul McKenney |
| Price | 22.41 USD | 82.12 USD |
| Market Cap | 15.56 billion USD | 14.32 billion USD |
| Beta | 0.73 | 0.42 |
| Exchange | NASDAQ | NYSE |
| IPO Date | October 5, 2004 | November 6, 1986 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ARCC and UNM 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.
UNM
14.78%
Insurance - Life Industry
- Max
- 23.38%
- Q3
- 14.56%
- Median
- 11.23%
- Q1
- 1.67%
- Min
- -5.23%
In the upper quartile for the Insurance - Life industry, UNM’s Return on Equity of 14.78% 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.
UNM
2.63%
Insurance - Life Industry
- Max
- 6.30%
- Q3
- 3.33%
- Median
- 2.16%
- Q1
- 0.68%
- Min
- -0.10%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Life 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.
UNM
12.35%
Insurance - Life Industry
- Max
- 21.20%
- Q3
- 11.59%
- Median
- 7.10%
- Q1
- 3.79%
- Min
- 2.14%
A Net Profit Margin of 12.35% places UNM in the upper quartile for the Insurance - Life 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.
UNM
16.42%
Insurance - Life Industry
- Max
- 38.96%
- Q3
- 37.28%
- Median
- 14.06%
- Q1
- 8.95%
- Min
- -1.68%
In the Insurance - Life industry, Operating Profit Margin is often not the primary measure of operational efficiency.
Profitability at a Glance
| Symbol | ARCC | UNM |
|---|---|---|
| Return on Equity (TTM) | 11.03% | 14.78% |
| Return on Assets (TTM) | 5.08% | 2.52% |
| Return on Invested Capital (TTM) | 208.60% | 2.63% |
| Net Profit Margin (TTM) | 67.48% | 12.35% |
| Operating Profit Margin (TTM) | 91.13% | 16.42% |
| Gross Profit Margin (TTM) | 95.92% | 98.21% |
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.
UNM
--
Insurance - Life Industry
- Max
- 843.97
- Q3
- 821.68
- Median
- 6.06
- Q1
- 3.15
- Min
- 0.47
Current Ratio data for UNM 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.
UNM
0.37
Insurance - Life Industry
- Max
- 0.86
- Q3
- 0.83
- Median
- 0.55
- Q1
- 0.37
- Min
- 0.27
UNM’s Debt-to-Equity Ratio of 0.37 is typical for the Insurance - Life industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
UNM
10.27
Insurance - Life Industry
- Max
- 37.82
- Q3
- 19.50
- Median
- 6.25
- Q1
- 2.29
- Min
- -0.76
UNM’s Interest Coverage Ratio of 10.27 is positioned comfortably within the norm for the Insurance - Life industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ARCC | UNM |
|---|---|---|
| Current Ratio (TTM) | -- | -- |
| Quick Ratio (TTM) | -- | -- |
| Debt-to-Equity Ratio (TTM) | -- | 0.37 |
| Debt-to-Asset Ratio (TTM) | -- | 0.06 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.35 | 1.59 |
| Interest Coverage Ratio (TTM) | 3.77 | 10.27 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARCC and UNM. 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.
UNM
2.05%
Insurance - Life Industry
- Max
- 10.36%
- Q3
- 4.76%
- Median
- 2.40%
- Q1
- 1.51%
- Min
- 0.00%
UNM’s Dividend Yield of 2.05% is consistent with its peers in the Insurance - Life 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.
UNM
19.14%
Insurance - Life Industry
- Max
- 203.94%
- Q3
- 64.38%
- Median
- 29.88%
- Q1
- 19.14%
- Min
- 0.00%
UNM’s Dividend Payout Ratio of 19.14% is within the typical range for the Insurance - Life industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ARCC | UNM |
|---|---|---|
| Dividend Yield (TTM) | 8.57% | 2.05% |
| Dividend Payout Ratio (TTM) | 81.85% | 19.14% |
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.
UNM
9.31
Insurance - Life Industry
- Max
- 17.82
- Q3
- 16.08
- Median
- 12.43
- Q1
- 7.33
- Min
- 3.69
UNM’s P/E Ratio of 9.31 is within the middle range for the Insurance - Life industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
UNM
0.89
Insurance - Life Industry
- Max
- 3.81
- Q3
- 1.95
- Median
- 0.97
- Q1
- 0.53
- Min
- 0.24
UNM’s Forward PEG Ratio of 0.89 is within the middle range of its peers in the Insurance - Life industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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.
UNM
1.12
Insurance - Life Industry
- Max
- 3.84
- Q3
- 2.89
- Median
- 1.06
- Q1
- 0.63
- Min
- 0.31
UNM’s P/S Ratio of 1.12 aligns with the market consensus for the Insurance - Life industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
UNM
1.44
Insurance - Life Industry
- Max
- 3.87
- Q3
- 2.13
- Median
- 1.49
- Q1
- 0.95
- Min
- 0.38
UNM’s P/B Ratio of 1.44 is within the conventional range for the Insurance - Life 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 | UNM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 10.53 | 9.31 |
| Forward PEG Ratio (TTM) | -7.92 | 0.89 |
| Price-to-Sales Ratio (P/S, TTM) | 7.30 | 1.12 |
| Price-to-Book Ratio (P/B, TTM) | 1.11 | 1.44 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -6.47 | 9.98 |
| EV-to-EBITDA (TTM) | 8.15 | 8.08 |
| EV-to-Sales (TTM) | 7.00 | 1.40 |