Ares Capital (ARCC) Competitors

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

Which has higher earnings & valuation, BK or ARCC?

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
Bank of New York Mellon	$18.55B	3.11	$4.53B	$6.14	13.09
Ares Capital	$1.71B	8.28	$1.52B	$2.45	8.43

Is BK or ARCC more profitable?

Ares Capital has a net margin of 50.90% compared to Bank of New York Mellon's net margin of 11.35%. Bank of New York Mellon's return on equity of 12.68% beat Ares Capital's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Bank of New York Mellon	11.35%	12.68%	1.10%
Ares Capital	50.90%	11.54%	5.50%

Is BK or ARCC a better dividend stock?

Bank of New York Mellon pays an annual dividend of $1.88 per share and has a dividend yield of 2.3%. Ares Capital pays an annual dividend of $1.92 per share and has a dividend yield of 9.3%. Bank of New York Mellon pays out 30.6% of its earnings in the form of a dividend. Ares Capital pays out 78.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bank of New York Mellon has increased its dividend for 14 consecutive years.

Do analysts prefer BK or ARCC?

Bank of New York Mellon presently has a consensus target price of $91.31, suggesting a potential upside of 13.64%. Ares Capital has a consensus target price of $22.22, suggesting a potential upside of 7.56%. Given Bank of New York Mellon's higher probable upside, equities analysts clearly believe Bank of New York Mellon is more favorable than Ares Capital.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of New York Mellon	0 Sell rating(s)	5 Hold rating(s)	9 Buy rating(s)	0 Strong Buy rating(s)	2.64
Ares Capital	0 Sell rating(s)	3 Hold rating(s)	7 Buy rating(s)	1 Strong Buy rating(s)	2.82

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

85.3% of Bank of New York Mellon shares are owned by institutional investors. Comparatively, 27.4% of Ares Capital shares are owned by institutional investors. 0.1% of Bank of New York Mellon shares are owned by insiders. Comparatively, 0.5% 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 is poised for long-term growth.

Which has more risk & volatility, BK or ARCC?

Bank of New York Mellon has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, Ares Capital has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Does the MarketBeat Community prefer BK or ARCC?

Bank of New York Mellon received 489 more outperform votes than Ares Capital when rated by MarketBeat users. Likewise, 66.47% of users gave Bank of New York Mellon an outperform vote while only 62.63% of users gave Ares Capital an outperform vote.

Company	Underperform	Outperform
Bank of New York Mellon	Outperform Votes 908 66.47%	Underperform Votes 458 33.53%
Ares Capital	Outperform Votes 419 62.63%	Underperform Votes 250 37.37%

Does the media refer more to BK or ARCC?

In the previous week, Ares Capital had 22 more articles in the media than Bank of New York Mellon. MarketBeat recorded 39 mentions for Ares Capital and 17 mentions for Bank of New York Mellon. Bank of New York Mellon's average media sentiment score of 1.64 beat Ares Capital's score of 0.49 indicating that Bank of New York Mellon is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Bank of New York Mellon	15 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Ares Capital	12 Very Positive mention(s)	7 Positive mention(s)	10 Neutral mention(s)	3 Negative mention(s)	1 Very Negative mention(s)	Neutral

Summary

Bank of New York Mellon beats Ares Capital on 14 of the 22 factors compared between the two stocks.