Ares Capital (ARCC) Competitors

Ares Capital (NASDAQ:ARCC) and Bank of New York Mellon (NYSE:BK) are both large-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, media sentiment, risk, analyst recommendations, dividends, valuation, community ranking and profitability.

Do analysts prefer ARCC or BK?

Ares Capital currently has a consensus price target of $21.50, suggesting a potential upside of 0.05%. Bank of New York Mellon has a consensus price target of $60.17, suggesting a potential downside of 0.47%. Given Ares Capital's stronger consensus rating and higher possible upside, research analysts plainly believe Ares Capital is more favorable than Bank of New York Mellon.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ares Capital	0 Sell rating(s)	2 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.71
Bank of New York Mellon	0 Sell rating(s)	4 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.56

Is ARCC or BK more profitable?

Ares Capital has a net margin of 62.77% compared to Bank of New York Mellon's net margin of 9.48%. Ares Capital's return on equity of 12.37% beat Bank of New York Mellon's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Ares Capital	62.77%	12.37%	5.87%
Bank of New York Mellon	9.48%	11.80%	1.02%

Does the MarketBeat Community favor ARCC or BK?

Bank of New York Mellon received 475 more outperform votes than Ares Capital when rated by MarketBeat users. Likewise, 67.15% of users gave Bank of New York Mellon an outperform vote while only 62.56% of users gave Ares Capital an outperform vote.

Company	Underperform	Outperform
Ares Capital	Outperform Votes 406 62.56%	Underperform Votes 243 37.44%
Bank of New York Mellon	Outperform Votes 881 67.15%	Underperform Votes 431 32.85%

Which has better valuation & earnings, ARCC or BK?

Bank of New York Mellon has higher revenue and earnings than Ares Capital. Ares Capital is trading at a lower price-to-earnings ratio than Bank of New York Mellon, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ares Capital	$2.61B	5.04	$1.52B	$2.92	7.34
Bank of New York Mellon	$33.81B	1.33	$3.29B	$4.10	14.70

Is ARCC or BK a better dividend stock?

Ares Capital pays an annual dividend of $1.92 per share and has a dividend yield of 9.0%. Bank of New York Mellon pays an annual dividend of $1.68 per share and has a dividend yield of 2.8%. Ares Capital pays out 65.8% of its earnings in the form of a dividend. Bank of New York Mellon pays out 41.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Which has more risk and volatility, ARCC or BK?

Ares Capital has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Bank of New York Mellon has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Does the media favor ARCC or BK?

In the previous week, Bank of New York Mellon had 4 more articles in the media than Ares Capital. MarketBeat recorded 14 mentions for Bank of New York Mellon and 10 mentions for Ares Capital. Ares Capital's average media sentiment score of 0.79 beat Bank of New York Mellon's score of 0.74 indicating that Ares Capital is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Ares Capital	7 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Bank of New York Mellon	6 Very Positive mention(s)	0 Positive mention(s)	8 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do insiders and institutionals have more ownership in ARCC or BK?

27.4% of Ares Capital shares are owned by institutional investors. Comparatively, 85.3% of Bank of New York Mellon shares are owned by institutional investors. 0.6% of Ares Capital shares are owned by company insiders. Comparatively, 0.1% of Bank of New York Mellon shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Bank of New York Mellon beats Ares Capital on 10 of the 19 factors compared between the two stocks.