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ARCC vs. XYZ: Ares Capital vs. Block Stock Comparison

How do Ares Capital (ARCC) and Block (XYZ) 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 Block (XYZ) both fall under the Financial Services industry group, but ARCC is classified in Capital Markets while XYZ is classified in Financial Services.

Company profile comparison for Ares Capital (ARCC) and Block (XYZ)
Profile ItemARCCXYZ
NameAres Capital Corp.Block Inc. Class A Common Stock
Country/RegionUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS Industry GroupFinancial ServicesFinancial Services
GICS IndustryCapital MarketsFinancial Services
GICS Sub-IndustryAsset Management & Custody BanksTransaction & Payment Processing Services
Market Capitalization13.82 billion USD51.67 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateOctober 5, 2004November 19, 2015
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

ARCC
XYZ
GSPC
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Ares Capital (ARCC) vs. Block (XYZ), 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 Block (XYZ). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Ares Capital (ARCC) and Block (XYZ)
MetricARCCXYZ
Total Return (1Y)5.40%35.34%
Total Return (3Y, Annualized)9.48%20.17%
Total Return (5Y, Annualized)8.26%-17.43%

Risk Profile

Drawdown History

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

Risk Metrics

Block (XYZ) has a highly aggressive beta of 2.48, indicating much higher sensitivity to broad-market moves, while Ares Capital (ARCC) is defensive at 0.59 and tends to be less market-sensitive — a wide gap in beta profiles.

Risk profile metrics for Ares Capital (ARCC) and Block (XYZ)
MetricARCCXYZ
Volatility (1Y, Annualized)18.97%48.01%
Beta (5Y)0.592.48
Max Drawdown (5Y)-21.76%-83.55%
Avg. Volume (3M)4.45M4.73M

Risk-Adjusted Performance

Risk-Return Positioning

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ARCC and XYZ 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 Block (XYZ)
MetricARCCXYZ
Sharpe Ratio (1Y)0.060.65
Sortino Ratio (1Y)0.091.03

Profitability

ROE (TTM)

Ares Capital (ARCC) at 6.19% is around its peer norm for ROE, while Block (XYZ) at 2.02% drops into the bottom quartile, signaling weaker returns on shareholders’ equity.

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%

XYZ

Financial Services industry group

2.02%

Max
44.78%
Q3
21.85%
Median
12.91%
Q1
4.48%
XYZ
2.02%
Min
-18.71%
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Ares Capital (ARCC) vs. Block (XYZ): A comparison of their ROE against the Financial Services industry group benchmark.

Net Margin (TTM)

Ares Capital (ARCC) at 28.35% keeps a top-quartile share of each sales dollar as profit, while Block (XYZ) at 1.80% keeps a bottom-quartile share.

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%

XYZ

Financial Services industry group

1.80%

Max
62.84%
Q3
28.05%
Median
15.36%
Q1
4.82%
XYZ
1.80%
Min
-28.52%
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Ares Capital (ARCC) vs. Block (XYZ): A comparison of their net margin against the Financial Services industry group benchmark.

Operating Margin (TTM)

Ares Capital (ARCC) at 72.74% carries a top-quartile operating margin, while Block (XYZ) at 6.65% operates in the bottom quartile.

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%

XYZ

Financial Services industry group

6.65%

Max
107.33%
Q3
55.90%
Median
30.09%
Q1
14.60%
XYZ
6.65%
Min
-44.34%
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Ares Capital (ARCC) vs. Block (XYZ): A comparison of their operating margin against the Financial Services industry group benchmark.

Profitability Metrics

Profitability metrics for Ares Capital (ARCC) and Block (XYZ)
MetricARCCXYZ
ROE (TTM)6.19%2.02%
ROA (TTM)4.78%1.94%
Net Margin (TTM)28.35%1.80%
Operating Margin (TTM)72.74%6.65%
Gross Margin (TTM)----

Growth

Revenue Growth

Both Ares Capital (ARCC) at -12.08% and Block (XYZ) at 0.30% post bottom-quartile revenue growth versus peers, pointing to weaker demand or pricing momentum than typical rivals.

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Ares Capital (ARCC) vs. Block (XYZ): A comparison of their Revenue Growth across different time periods.

EPS Growth

Ares Capital (ARCC) at -23.77% is around its peer norm for EPS growth, while Block (XYZ) at -53.95% drops into the bottom quartile, signaling weaker earnings momentum.

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Ares Capital (ARCC) vs. Block (XYZ): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Ares Capital (ARCC) and Block (XYZ)
MetricARCCXYZ
Revenue Growth (YoY)-12.08%0.30%
Revenue Growth (3Y CAGR)26.67%11.33%
EPS Growth (YoY)-23.77%-53.95%
EPS Growth (3Y CAGR)16.05%--

Financial Strength

Current Ratio (MRQ)

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

Dividends

Dividend Yield (TTM)

Block (XYZ) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Ares Capital (ARCC) reports a yield of 9.92%, ranking against industry peers normally.

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%

XYZ

Financial Services industry group

0.00%

Max
9.77%
Q3
3.92%
Median
1.09%
XYZ
0.00%
Q1
0.00%
Min
0.00%
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Ares Capital (ARCC) vs. Block (XYZ): 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; Block (XYZ) pays no dividend (payout 0.00%).

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%

XYZ

Financial Services industry group

0.00%

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

Dividend Metrics

Dividend metrics for Ares Capital (ARCC) and Block (XYZ)
MetricARCCXYZ
Dividend Yield (TTM)9.92%0.00%
Dividend Payout Ratio (TTM)157.38%0.00%

Valuation

P/E Ratio (TTM)

Ares Capital (ARCC) at 15.68 is near its industry’s usual P/E ratio, while Block (XYZ) at 112.47 sits above its peer range — an unusually expensive price for XYZ’s trailing earnings.

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

XYZ

Financial Services industry group

112.47

XYZ
112.47
Max
45.85
Q3
24.64
Median
15.37
Q1
9.68
Min
0.16
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Ares Capital (ARCC) vs. Block (XYZ): A comparison of their P/E ratio against the Financial Services industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Ares Capital (ARCC) at 4.48 and Block (XYZ) at 2.01 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

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

XYZ

Financial Services industry group

2.01

Max
9.23
Q3
4.57
Median
2.72
XYZ
2.01
Q1
1.28
Min
-0.55
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Ares Capital (ARCC) vs. Block (XYZ): 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 Block (XYZ) at 2.26 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

XYZ

Financial Services industry group

2.26

Max
7.79
Q3
3.63
XYZ
2.26
Median
1.57
Q1
0.81
Min
-0.39
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Ares Capital (ARCC) vs. Block (XYZ): A comparison of their P/B ratio against the Financial Services industry group benchmark.

Valuation Metrics

Valuation metrics for Ares Capital (ARCC) and Block (XYZ)
MetricARCCXYZ
P/E Ratio (TTM)15.68112.47
P/S Ratio (TTM)4.482.01
P/B Ratio (MRQ)0.992.26
Free Cash Flow Yield (TTM)----