Federated Investors (FII) Competitors

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

Which has more risk & volatility, ARCC or FII?

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

Is ARCC or FII more profitable?

Ares Capital has a net margin of 44.94% compared to Federated Investors' net margin of 20.52%. Federated Investors' return on equity of 28.65% beat Ares Capital's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Ares Capital	44.94%	10.48%	5.00%
Federated Investors	20.52%	28.65%	15.66%

Is ARCC or FII a better dividend stock?

Ares Capital pays an annual dividend of $1.92 per share and has a dividend yield of 8.6%. Federated Investors pays an annual dividend of $1.08 per share and has a dividend yield of 2.1%. 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. Federated Investors pays out 40.1% of its earnings in the form of a dividend.

Do analysts prefer ARCC or FII?

Ares Capital currently has a consensus price target of $22.86, suggesting a potential upside of 2.27%. Given Ares Capital's stronger consensus rating and higher possible upside, equities research analysts clearly believe Ares Capital is more favorable than Federated Investors.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ares Capital	0 Sell rating(s)	2 Hold rating(s)	7 Buy rating(s)	0 Strong Buy rating(s)	2.78
Federated Investors	0 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	0.00

Which has better earnings & valuation, ARCC or FII?

Ares Capital has higher revenue and earnings than Federated Investors. Ares Capital is trading at a lower price-to-earnings ratio than Federated Investors, 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	$1.50B	10.50	$1.52B	$2.05	10.90
Federated Investors	$1.33B	4.01	$272.34M	$2.69	19.54

Do insiders & institutionals have more ownership in ARCC or FII?

27.4% of Ares Capital shares are held by institutional investors. Comparatively, 82.2% of Federated Investors shares are held by institutional investors. 0.5% of Ares Capital shares are held by company insiders. Comparatively, 5.5% of Federated Investors shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Does the media prefer ARCC or FII?

In the previous week, Ares Capital had 18 more articles in the media than Federated Investors. MarketBeat recorded 20 mentions for Ares Capital and 2 mentions for Federated Investors. Ares Capital's average media sentiment score of 1.12 beat Federated Investors' score of 0.00 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	15 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	1 Negative mention(s)	2 Very Negative mention(s)	Positive
Federated Investors	0 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Neutral

Summary

Ares Capital beats Federated Investors on 10 of the 18 factors compared between the two stocks.