FS KKR Capital (FSK) Competitors

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

Does the media prefer ARCC or FSK?

In the previous week, Ares Capital had 23 more articles in the media than FS KKR Capital. MarketBeat recorded 23 mentions for Ares Capital and 0 mentions for FS KKR Capital. Ares Capital's average media sentiment score of 1.09 beat FS KKR Capital's score of 0.00 indicating that Ares Capital is being referred to more favorably in the media.

Company	Overall Sentiment
Ares Capital	Positive
FS KKR Capital	Neutral

Is ARCC or FSK a better dividend stock?

Ares Capital pays an annual dividend of $1.92 per share and has a dividend yield of 8.4%. FS KKR Capital pays an annual dividend of $2.56 per share and has a dividend yield of 11.6%. 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. FS KKR Capital pays out 134.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Which has stronger earnings and valuation, ARCC or FSK?

Ares Capital has higher revenue and earnings than FS KKR Capital. Ares Capital is trading at a lower price-to-earnings ratio than FS KKR 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
Ares Capital	$2.99B	5.30	$1.52B	$2.05	11.13
FS KKR Capital	$1.72B	N/A	$585M	$1.90	11.59

Which has more risk and volatility, ARCC or FSK?

Ares Capital has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, FS KKR Capital has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Is ARCC or FSK more profitable?

Ares Capital has a net margin of 43.50% compared to FS KKR Capital's net margin of 31.53%. FS KKR Capital's return on equity of 11.78% beat Ares Capital's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Ares Capital	43.50%	11.05%	5.25%
FS KKR Capital	31.53%	11.78%	5.27%

Do analysts recommend ARCC or FSK?

Ares Capital presently has a consensus target price of $22.21, suggesting a potential downside of 2.65%. FS KKR Capital has a consensus target price of $19.50, suggesting a potential downside of 11.46%. Given Ares Capital's stronger consensus rating and higher probable upside, equities research analysts clearly believe Ares Capital is more favorable than FS KKR Capital.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ares Capital	0 Sell rating(s)	3 Hold rating(s)	5 Buy rating(s)	1 Strong Buy rating(s)	2.78
FS KKR Capital	1 Sell rating(s)	5 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.83

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

27.4% of Ares Capital shares are held by institutional investors. Comparatively, 36.3% of FS KKR Capital shares are held by institutional investors. 0.5% of Ares Capital shares are held by insiders. Comparatively, 0.3% of FS KKR Capital shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Ares Capital beats FS KKR Capital on 12 of the 18 factors compared between the two stocks.