Hercules Capital (HTGC) Competitors

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

Which has more volatility and risk, ARCC or HTGC?

Ares Capital has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Hercules Capital has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Which has stronger earnings & valuation, ARCC or HTGC?

Ares Capital has higher revenue and earnings than Hercules Capital. Ares Capital is trading at a lower price-to-earnings ratio than Hercules 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	5.23	$1.52B	$2.05	10.99
Hercules Capital	$493.59M	6.59	$262.97M	$1.33	13.95

Does the media favor ARCC or HTGC?

In the previous week, Ares Capital had 7 more articles in the media than Hercules Capital. MarketBeat recorded 17 mentions for Ares Capital and 10 mentions for Hercules Capital. Ares Capital's average media sentiment score of 1.20 beat Hercules Capital's score of 0.01 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	11 Very Positive mention(s)	1 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Hercules Capital	2 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral

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

27.4% of Ares Capital shares are owned by institutional investors. Comparatively, 19.7% of Hercules Capital shares are owned by institutional investors. 0.5% of Ares Capital shares are owned by insiders. Comparatively, 1.9% of Hercules Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Is ARCC or HTGC more profitable?

Hercules Capital has a net margin of 45.23% compared to Ares Capital's net margin of 43.50%. Hercules Capital's return on equity of 16.84% beat Ares Capital's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Ares Capital	43.50%	11.05%	5.25%
Hercules Capital	45.23%	16.84%	8.53%

Is ARCC or HTGC a better dividend stock?

Ares Capital pays an annual dividend of $1.92 per share and has a dividend yield of 8.5%. Hercules Capital pays an annual dividend of $1.60 per share and has a dividend yield of 8.6%. 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. Hercules Capital pays out 120.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hercules Capital has increased its dividend for 1 consecutive years. Hercules Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Do analysts rate ARCC or HTGC?

Ares Capital presently has a consensus price target of $22.00, suggesting a potential downside of 2.31%. Hercules Capital has a consensus price target of $19.92, suggesting a potential upside of 7.37%. Given Hercules Capital's higher probable upside, analysts clearly believe Hercules Capital is more favorable than Ares 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
Hercules Capital	0 Sell rating(s)	2 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.67

Summary

Ares Capital and Hercules Capital tied by winning 10 of the 20 factors compared between the two stocks.