ARCC vs. UDR, KIM, BIP, RGA, RYAN, EQH, BEN, WPC, CNA, and AMH
Should you be buying Ares Capital stock or one of its competitors? The main competitors of Ares Capital include UDR (UDR), Kimco Realty (KIM), Brookfield Infrastructure Partners (BIP), Reinsurance Group of America (RGA), Ryan Specialty (RYAN), Equitable (EQH), Franklin Resources (BEN), W. P. Carey (WPC), CNA Financial (CNA), and American Homes 4 Rent (AMH). These companies are all part of the "finance" sector.
UDR (NYSE:UDR) and Ares Capital (NASDAQ:ARCC) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, media sentiment, institutional ownership, risk, dividends, valuation, earnings and community ranking.
UDR pays an annual dividend of $1.70 per share and has a dividend yield of 4.5%. Ares Capital pays an annual dividend of $1.92 per share and has a dividend yield of 9.2%. UDR pays out 123.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ares Capital pays out 71.9% of its earnings in the form of a dividend. UDR has raised its dividend for 14 consecutive years. Ares Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
UDR has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Ares Capital has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.
Ares Capital has higher revenue and earnings than UDR. Ares Capital is trading at a lower price-to-earnings ratio than UDR, indicating that it is currently the more affordable of the two stocks.
UDR received 43 more outperform votes than Ares Capital when rated by MarketBeat users. However, 62.33% of users gave Ares Capital an outperform vote while only 55.28% of users gave UDR an outperform vote.
In the previous week, UDR had 14 more articles in the media than Ares Capital. MarketBeat recorded 36 mentions for UDR and 22 mentions for Ares Capital. UDR's average media sentiment score of 0.44 beat Ares Capital's score of 0.20 indicating that Ares Capital is being referred to more favorably in the news media.
UDR presently has a consensus target price of $41.44, suggesting a potential upside of 10.55%. Ares Capital has a consensus target price of $20.80, suggesting a potential downside of 0.24%. Given Ares Capital's higher probable upside, equities research analysts plainly believe UDR is more favorable than Ares Capital.
Ares Capital has a net margin of 58.22% compared to Ares Capital's net margin of 27.81%. UDR's return on equity of 12.50% beat Ares Capital's return on equity.
97.8% of UDR shares are owned by institutional investors. Comparatively, 27.4% of Ares Capital shares are owned by institutional investors. 3.7% of UDR shares are owned by insiders. Comparatively, 0.6% of Ares Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Ares Capital beats UDR on 12 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ARCC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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