Barings Bdc (BBDC) Competitors

Barings Bdc (NYSE:BBDC) and Ares Capital (NASDAQ:ARCC) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations, institutional ownership and media sentiment.

Do institutionals and insiders hold more shares of BBDC or ARCC?

44.1% of Barings Bdc shares are held by institutional investors. Comparatively, 27.4% of Ares Capital shares are held by institutional investors. 0.5% of Barings Bdc shares are held by company insiders. Comparatively, 0.5% of Ares Capital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Is BBDC or ARCC more profitable?

Ares Capital has a net margin of 44.94% compared to Barings Bdc's net margin of 35.67%. Ares Capital's return on equity of 10.48% beat Barings Bdc's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Barings Bdc	35.67%	9.76%	4.26%
Ares Capital	44.94%	10.48%	5.00%

Do analysts prefer BBDC or ARCC?

Barings Bdc presently has a consensus target price of $9.67, indicating a potential upside of 1.22%. Ares Capital has a consensus target price of $22.86, indicating a potential upside of 2.00%. Given Ares Capital's stronger consensus rating and higher possible upside, analysts plainly believe Ares Capital is more favorable than Barings Bdc.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barings Bdc	0 Sell rating(s)	1 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.67
Ares Capital	0 Sell rating(s)	2 Hold rating(s)	7 Buy rating(s)	0 Strong Buy rating(s)	2.78

Which has more volatility & risk, BBDC or ARCC?

Barings Bdc has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Ares Capital has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Which has stronger valuation and earnings, BBDC or ARCC?

Ares Capital has higher revenue and earnings than Barings Bdc. Barings Bdc is trading at a lower price-to-earnings ratio than Ares Capital, 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
Barings Bdc	$286.17M	3.51	$110.29M	$0.96	9.95
Ares Capital	$2.99B	5.29	$1.52B	$2.05	10.93

Does the media refer more to BBDC or ARCC?

In the previous week, Ares Capital had 7 more articles in the media than Barings Bdc. MarketBeat recorded 9 mentions for Ares Capital and 2 mentions for Barings Bdc. Ares Capital's average media sentiment score of 1.48 beat Barings Bdc's score of 1.04 indicating that Ares Capital is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Barings Bdc	1 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Ares Capital	7 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is BBDC or ARCC a better dividend stock?

Barings Bdc pays an annual dividend of $1.04 per share and has a dividend yield of 10.9%. Ares Capital pays an annual dividend of $1.92 per share and has a dividend yield of 8.6%. Barings Bdc pays out 108.3% 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 93.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Barings Bdc has increased its dividend for 3 consecutive years. Barings Bdc is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Ares Capital beats Barings Bdc on 14 of the 19 factors compared between the two stocks.