Ares Capital Corporation (ARCC) vs Equitable Holdings, Inc. (EQH)

Ares Capital Corporation and Equitable Holdings, Inc. are both Asset Management companies. Ares Capital Corporation and Equitable Holdings, Inc. are of similar size ($14.2B and $14.0B). Equitable Holdings, Inc. trades at the lower P/E: 9.5× against 15.8×. Equitable Holdings, Inc. grew revenue faster over the last twelve months: 8.69% against 2.29%. Ares Capital Corporation has the higher net margin (28.3% vs 11.1%) and the higher return on invested capital (3.32% vs 0.00%). Both pay a dividend; Ares Capital Corporation yields more (9.91% vs 2.15%). Across the 20 metrics below, Ares Capital Corporation leads on 13 and Equitable Holdings, Inc. on 7.

Valuation

Metric ARCC EQH Asset Management median
P/E 15.85 9.52 13.38
P/S 4.52 1.10 2.99
P/B 1.00 n/m 0.91
Price to free cash flow 12.19 5.56 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 6.31% 10.50% 4.67%
Free cash flow yield 8.21% 17.98% 4.85%

Profitability

Metric ARCC EQH Asset Management median
Gross margin 100.00% 58.26% 100.00%
Operating margin 76.13% 17.98% 27.27%
Net margin 28.34% 11.11% 11.89%
Free cash flow margin 37.09% 20.08% 5.96%
Return on equity 6.19% (406.73%) 4.57%
Return on assets 2.85% 0.45% 1.40%
Return on invested capital 3.32% 0.00% 2.12%

Growth

Metric ARCC EQH Asset Management median
Revenue growth (TTM) 2.29% 8.69% 7.26%
EPS growth (last fiscal year) (23.77%) (227.78%) (5.64%)
Revenue growth, 5-year CAGR 15.10% (1.24%) 11.84%
Net income growth, 5-year CAGR 21.83% 0.00% 0.00%

Health

Metric ARCC EQH Asset Management median
Debt to equity 1.08 (40.48) 0.40
Current ratio 1.00 0.12 1.23
Net debt to EBITDA 6.59 60.82 1.06

Dividend

Metric ARCC EQH Asset Management median
Dividend yield 9.91% 2.15% 6.43%
Payout ratio 1.57 0.21 0.91

Size

Metric ARCC EQH Asset Management median
Market cap 13.97b 14.21b 692.54m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack